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HomeMy WebLinkAbout1997-177E \WPDOCS\ORD\TAX NOTE First Amendment - Ordinance No 2000-155 ORDINANCE NO Ot AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE SECTION I That the Mayor, or in his absence, the Mayor Pro Tem, is authorized to execute a contract for the collection of delinquent property taxes, substantially in the form of the contract which is attached hereto and incorporated by reference herein SECTION II, That the expenditure of funds as provided in the contract are hereby authorized SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the �+e`day of 1997 J ILLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES THE STATE OF TEXAS COUNTY OF DENTON THIS CONTRACT is made and entered into by and between the City of Denton, 215 E McKinney, Denton, Texas 76201 ("CITY"), acting herein by and through its governing body, and Blair, Goggan, Sampson & Meeks, 326-G E McKinney, Denton, Texas 76201 and the Law Office of Mike Gregory, 303 N Carroll Boulevard, Suite 100, Denton, Texas 76201 ("FIRM") I. EMPLOYMENT OF FIRM CITY agrees to employ and does hereby employ FIRM, as an independent contractor, and FIRM hereby agrees to enforce by suit or otherwise the collection of all delinquent taxes, penalty and interest owing to CITY Current year taxes which become delinquent within the period of this Contract shall become subject to the terms of the Contract upon the following conditions and FIRM shall perform the following services A Taxes that become delinquent during the term of this Con- tract, that are not delinquent for any prior years, become subject to the terms of this Contract on July 1st of the year in which they become delinquent B Taxes that become delinquent during the term of this Con- tract on property that is delinquent for prior years shall become subject to its terms on the first day of delinquency as defined by the Texas Property Tax Code C FIRM shall begin collecting current year personal property taxes on March 1st of the year in which they become delinquent CITY shall not owe FIRM a fee on the current year delinquent per- sonal property taxes collected between March 1st and June 30th unless attorney's fees are collected pursuant to Section 33 48 of the Texas Property Tax Code D FIRM shall perform all those services set forth in CITY's Request for Proposals ("RFP") dated April 15, 1997 and FIRM's response to the RFP dated May 13, 1997, which are attached hereto and made a part hereof respectively as Exhibits "A" and "B" as if written word for word herein, as well as all other services set forth in the Contract E If there is any conflict between the terms of this Contract and conditions of the attached exhibits, this Contract will control over the terms and conditions of the attached exhibits FIRM hereby agrees to perform the services herein with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas II. PROVISION OF INFORMATION CITY agrees to furnish all necessary delinquent tax informa- tion to FIRM on all property within the boundaries of CITY III. INVESTIGATION AND ASSISTANCE FIRM agrees to conduct investigations as to the address of each taxpayer and the location of the property where such informa- tion may be incorrect on the delinquent tax record FIRM shall bring to the attention of the appropriate tax official of CITY any errors, double assessments, discrepancies, or inaccuracies in the information provided on the delinquent tax record detected by FIRM FIRM further agrees to provide CITY with any advice or assistance in connection with updating the tax rolls CITY shall make avail- able to FIRM information which CITY may have with regard to the name, identity, location of necessary parties and descriptions of property in connection with each delinquent tax account upon request by FIRM IV. PROCEDURES FOR COLLECTION Upon initial receipt of the delinquent tax records by FIRM in computer readable form, FIRM agrees to initiate procedures for the collection of the full amount due from each taxpayer Within a reasonable time frame but not more than sixty (60) days from FIRM's receipt of the delinquent tax records, FIRM hereby agrees to send, by first class mail, a notice of delinquency to each and every delinquent taxpayer where the taxes have not been deferred nor involved in a lawsuit against the appraisal district to determine value, requesting said taxpayer to remit the full amount due and owing to CITY V. REVIEW AND AUTHORIZATION TO SUE Following transmittal of the notice of delinquency as specified hereinabove, FIRM will commence procedures in anticipa- tion of litigation for aggressive pursuit of collection CITY shall have absolute discretion over those accounts on which suit should be filed The transmittal of the delinquent tax information to FIRM from CITY shall constitute authorization to file suit following the mailing of the initial notice of delinquency Upon written notice, CITY may at any time withdraw authorization to file suit CITY may at any time withdraw authorization to foreclose and sell the property and said withdrawal shall be in writing VI. LITIGATION RESPONSIBILITIES A FIRM agrees to commence litigation, prosecute, and reduce to judgment all delinquent accounts including all pending lawsuits PAGE 2 that FIRM deems to warrant or on which CITY has specifically requested action in writing Each suit filed shall seek personal judgment against the individual taxpayer(s) for all taxes for which the taxpayer can be held personally liable, penalty and interest, foreclosure of any tax lien which may exist by operation of law, and any and all court costs incurred in prosecuting the lawsuit, and any collection fees or attorney's fees which the taxpayer is obligated to pay FIRM shall perform litigation responsibilities and protect CITY's legal remedies including appeals, preparation of any documents required, post -judgment activities, and any other actions necessary in order to collect the delinquent taxes S FIRM will assume the representation of CITY in all law- suits, including all pending lawsuits, involving the collection of delinquent taxes and enforcement of the tax lien including, but not limited to bankruptcy litigation, claims and actions required to be filed with federal agencies such as FDIC, FSLIC and RTC, interven- tions in suits filed on behalf of any other taxing unit's current suits, and any other suit or litigation which may involve or relate to the collection of delinquent taxes FIRM will inform CITY of any counterclaims or cross -actions filed against CITY C Upon request, provide legal advice and assistance to CITY in the acquisition of property pursuant to the Property Code for public purpose use VII. TAXPAYER SERVICES In addition to litigation, FIRM further agrees to provide tax- payer service without charge As such, FIRM agrees (1) to provide CITY tax collector legal advice and written opinions regarding tax matters upon request, (2) to respond to taxpayer inquiries and to advise CITY, in writing, or, and make any recommendations con- cerning installment payment agreements and settlement agreements proposed by the taxpayer CITY shall have final determination in acceptance of all installment payments or settlement agreements within parameters established by CITY FIRM shall have discretion to enter into installment agreements subject to CITY's prerogative of final determination In all demand letters and all communica- tionsiwith taxpayers, FIRM shall inform and instruct the taxpayer to remit its payment to CITY If remittance is received by FIRM, it must be transmitted in its entirety to CITY and received for processing by 11 30 a m of the following business day Checks made payable to FIRM shall be endorsed by FIRM to CITY No check, cash or money order for payment of delinquent taxes shall be deposited in any FIRM account VIII. PROGRESS REPORTS FIRM agrees to make delinquent tax collection progress reports to CITY monthly and quarterly, in a format containing information as requested by CITY's Executive Director of Finance Progress reports may include, without limitation PAGE 3 1 First demand letters mailed, 2 Number and value of suits filed, 3 Number and value of suits dismissed a due to collection, b other - specify reason, 4 Number and value of judgments entered, 5 Number and value of bankruptcies filed, 6 Copies of judgments, 7 Copies of proof of claims filed in bankruptcy court, 8 Copies of Foreclosure Sale Deeds, and 9 Number and value of delinquent accounts not col- lected as a percentage of total delinquent accounts provided by CITY for collection Within parameters established at the initiation of the collection program, FIRM shall advise CITY of any case in which FIRM's investigation has revealed that the taxpayer cannot be found, the enforcement of the tax lien cannot be accomplished, or further attempts at tax collection would be futile and FIRM's recommenda- tion relative to the proper disposition of the case In such cases, the CITY shall advise FIRM as to the appropriate disposition of the account IX. COMPENSATION A As compensation for the services rendered hereunder by FIRM, CITY hereby agrees to pay FIRM fifteen percent (15k) of the total amount of all delinquent taxes, penalty and interest for the tax years covered by this Contract as authorized by §33 48(a)(5) of the Property Tax Code All compensation set forth above shall become the property of FIRM at the time payment of taxes, penalty and interest are received by CITY The fifteen percent (15%) collection fee will only be paid on taxes which remain delinquent after July 1 of the year on which they became delinquent, pursuant to the Property Tax Code §33 07 Said collection fee will only be paid to FIRM after it has been received by CITY from taxpayer or from forced sales FIRM shall not be entitled to the aforesaid fifteen percent (15%) unless and until FIRM has taken some action in connection with recovering delinquent taxes The transmittal of a notice of delinquency shall constitute sufficient action in order to entitled FIRM to the fee aforesaid As compensation for the services rendered hereunder by FIRM for the collection of taxes which are not eligible for the additional penalty as authorized by Property Tax Code 933 07 and upon which suit has been filed, the compensation shall be reasonable attorney's fees approved by the court and not exceeding fifteen percent (15%) of the total amount of taxes, penalties and interest due CITY In no event shall FIRM be entitled to any fee unless and until CITY actually collects the delinquent taxes, penalty, interest, court costs or collection costs or attorney's fees from the taxpayer or from the proceeds of a forced sale or foreclosure In no event shall FIRM be entitled to any fee unless said fee is collected by CITY during the term of PAGE 4 this Contract or fee is collected by CITY on accounts) upon which FIRM is attorney of record at the time of judgment CITY shall pay said fees to FIRM by check monthly No interest shall be accrued on any late payment B The compensation set forth in paragraphs IX, X, and XIV of this Contract shall be the total compensation due from CITY to FIRM for all services provided pursuant to this Contract and in no event shall FIRM seek any additional compensation from CITY X. COLLECTION OF OTHER DELINQUENT ACCOUNTS FIRM shall, upon written request of City, undertake the collection of delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens The collection of these accounts shall be undertaken on the basis of attorney's fees assessed to and collected from the debtors CITY agrees to pay FIRM, as compensation, all amounts received as attorney's fees on delinquent accounts for paving assessment liens, substandard housing demolition liens, and weed liens which are collected during the term of this Contract as a result of FIRM's collection efforts XI. CONFLICTS OF INTEREST FIRM agrees not to represent any client who has an adversary position with the City of Denton, engage in any conflict of inter- est to fully comply with the Texas Disciplinary Rules of Profes- sional Conduct (Subtitle G - Texas Government Code) for the duration of this Contract XII. USE OF MUNICIPAL FACILITIES CITY agrees to allow FIRM to use a tax office computer terminal, and to provide a working area for use by FIRM employees, provided such use is reasonable and does not interfere with CITY's use of other computer terminals and work areas CITY also agrees to provide FIRM with computer tapes and tax file access upon request by FIRM FIRM agrees to pay CITY for use of the working area, its computer terminal, computer tapes, and tax file access The payment by FIRM for the above stated support services shall be in the amount of Three Hundred Seventy-five Dollars ($375 00) each month XIII. TERM This Contract shall have a term of three (3) years, beginning on July 1, 1997, and ending on June 30, 2000 This Contract may be extended for two additional one-year terms upon the CITY giving written notice to FIRM of its desire to continue this Contract at least thirty (30) days prior to the expiration of the initial three-year term, This Contract shall continue in full force and effect from month to month at the option of CITY, unless either PAGE 5 party delivers written notice to the other party of its intent to terminate this Contract at least thirty (30) days prior to the date of the intended termination FIRM shall have an additional six months to reduce to judgment and sale all tax collection lawsuits filed and collect all bankruptcy claims filed prior to the ter- mination date, and shall have the exclusive right to compensation of fees earned due to these suits during this six month period CITY shall have the right to sooner terminate this Contract by giving thirty (30) days' written notice of such intention, or in the event of any of the events taking place under Section XXXIV "Termination of Agreement" In case of such termination, FIRM shall be entitled to receive and retain all compensation due up to the date of said termination Upon termination, FIRM shall immediately deliver all files in their entirety to CITY at no cost to CITY XIV. ATTORNEY'S FEES In eminent domain and other judicial proceedings, FIRM will be entitled to only those attorney's fees awarded by the court and then only if collected by CITY In bankruptcy proceedings, FIRM shall be entitled to a fee of 15% of the tax, interest, and penalty actually collected by CITY FIRM agrees to file and diligently pursue all claims on behalf of CITY in bankruptcy, eminent domain and other judicial or administrative proceedings whether federal or state in nature XV. TAX WARRANTS Upon request and authorization of CITY, FIRM shall prepare and pursue the issuance of tax warrants FIRM shall then coordinate the seizure of personal property pursuant to warrant and actually accompany the Tax Collector to the location of the personal property which is to be seized to insure the necessary procedures have been followed XVI. SETTLEMENTS No settlements or compromises of taxes, penalty or interest shall be effected where prohibited by law and where authorized by law, only upon approval by CITY If a taxpayer requested waiver is upheld as provided by §33 oil of the Tax Code, FIRM will bear the costs of suit if it failed to notify the taxpayer of the delinquen- cy prior to filing of the suit XVII. NOTICE Any notice or other written instrument required or permitted to be delivered pursuant to the terms of this Contract shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, addressed to CITY or FIRM, as the case may be, at the following addresses PAGE 6 CITY FIRM City of Denton, Texas Stephen T Meeks ATTN Executive Director of Blair, Goggan, Sampson & Finance Meeks 215 E McKinney Oil & Gas Bldg, Suite 1414 Denton, TX 76201 309 W 7th Street Fort Worth, TX 76102 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested XVIII. COLLECTION REQUIREMENTS FIRM agrees to collect, between July 1, 1997 and June 30, 1998, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 1996 delinquency existing on July 1, 1997 FIRM agrees to collect, between July 1, 1998 and June 30, 1999, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 1997 delinquency existing on July 1, 1998 FIRM agrees to collect, between July 1, 1999 and June 30, 2000, not less than sixty percent (60%) of the total dollar value of the adjusted base tax of the 1998 delinquency existing on July 1, 1999 Furthermore, should the CITY invoke the option to extend this contract beyond June 30, 2000 as prescribed in Section XIII, then the FIRM agrees to collect between the July 1 and subsequent June 30 time period, for each year the contract is extended, not less than sixty percent (60%*) of the total dollar value of the adjusted base tax from the most recent tax year of the delinquency existing on July 1 of each respective year If FIRM does not collect the above referenced amount each year, it shall provide CITY with legal services, programming and computer services, or data processing equipment with a value not less than Seven Thousand Five Hundred Dollars ($7,500 00) or, at the option of CITY, FIRM shall pay CITY the sum of Seven Thousand Five Hundred Dollars ($7,5Q0 00) on or before August 15 of the year it fails to collect the minimum amount specified herein XIX. VENUE The terms, obligations and requirements of this Contract shall be construed in accordance with the laws of the State of Texas The obligations and requirements of the parties hereto are performable in Denton County, Texas Any litigation involving this Contract shall be tried in a court of competent jurisdiction sitting in Denton County, Texas XX. ACCEPTANCE OF EMPLOYMENT in consideration of the terms, covenants and mutual agreements hereinabove stated, FIRM hereby accepts the employment of CITY and undertakes the performance of this Contract as above stated PAGE 7 XXI. DIRECTIVES All directives between FIRM and CITY shall be confirmed in writing XXII. COVENANT NOT TO SUE FIRM further agrees not to bring any cause of action against CITY relative to this Contract Should FIRM bring any cause of action against CITY, FIRM agrees the liquidated damages shall not exceed $1 00 and the filing of such cause of action shall be considered a material breach of this Contract XXIII. AMBIGUITY Any ambiguity within this Contract shall be liberally interpreted in favor of CITY XXIV. ASSIGNMENT The rights and responsibilities of CITY under this Contract may be assigned by the City Council to another governmental unit in Denton County without approval of FIRM It is understood and agreed that this is a professional services contract and CITY is contracting for the unique services of FIRM FIRM's rights and responsibilities under this Contract may not be assigned by FIRM to another law firm or collection agency without written approval of the assignment by the City Council XXV. INDEMNITY AGREEMENT The FIRM shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal inDury, death and property damage, resulting from the negligent acts or omissions of the FIRM or its officers, shareholders, agents, or employees in the execution, operation, or performance of this Contract Nothing in this Contract shall be construed to create a liability to any person who is not a party to this Contract, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Contract, including the defense of governmental immunity, which defenses are hereby expressly reserved XXVI. INSURANCE During the performance of the services under this Contract, FIRM shall maintain the following insurance with an insurance PAGE 8 company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate The FIRM shall furnish insurance certificates or insurance policies at the CITY's request to evidence such coverages The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without 30 days prior written notice to CITY and FIRM In such event, the FIRM shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage XXVII. EXHIBITS RFP #2032 attached hereto as Exhibit "A" and the FIRM's response to the RFP attached hereto as Exhibit "B" are incorporated herein} as if set forth at length and made a part hereof The provisions of Exhibit "A" and Exhibit "B" shall set forth obliga- tions and duties of the FIRM to the extent that they do not conflict with other provisions set forth in this Contract, which contractual provisions shall control XXVIII. ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Contract by submitting the dispute to arbitration or other means of alternate dispute resolution, such as mediation No arbitration or alternate dispute resolution arising out of or relating to this Contract, involving one party,s disagreement, may include the other partyito the disagreement without the other's approval XXIX. ENTIRE This Contract, consisting of 13 pages and 2 exhibits, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior con- temporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof XXX. COMPLIANCE WITH LAWS The FIRM shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended PAGE 9 XXXI. DISCRIMINATION PROHIBITED In performing the services required hereunder, the FIRM shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap XXXII. PERSONNEL AND EQUIPMENT A The FIRM represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Contract Such personnel shall not be employees or officers of, or have any contractual relations with the CITY FIRM shall inform the CITY of any conflict of interest or potential conflict of interest that may arise during the term of this Contract B All services required hereunder will be performed by the FIRM or under its supervision All personnel engaged in work shall be qualified, and shall be authorized and permitted under state and local laws to perform such services C The FIRM represents that it has or will secure, at its own expense, the hardware, software, and other resources required to perform, in a timely manner, all the services required under the terms of this contract XXXIII. ASSIGNABILITY The FIRM shall not assign any interest in this Contract, and shall not transfer any interest in this Contract (whether by assignment, novation, or otherwise) without the prior written consent of the CITY XXXIV. TERMINATION OF AGREEMENT A Notwithstanding any other provision of this Contract, either party may terminate by giving thirty (30) days advance written notice to the other party B This Contract may be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Contract No such termination will be affected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance, and not less than 30 calendar days to cure the failure, and (2) an opportunity for consultation with the terminating party prior to termination C If the agreement is terminated prior to completion of the ser- vices to be provided hereunder, FIRM shall immediately cease all services and shall render a final bill for services to the PAGE 10 CITY within 30 days after the date of termination The CITY shall pay FIRM for all services properly rendered and satis- factorily performed and for reimbursable expenses to termina- tion incurred prior to the date of termination, in accordance with Article IX "Compensation" Should the CITY subsequently contract with a new consultant for the continuation of services on the Project, FIRM shall cooperate in providing information The FIRM shall turn over all documents prepared or furnished by FIRM pursuant to this Contract to the CITY on or before the date of termination, but may maintain copies of such documents for its use XXXV. MODIFICATION No waiver or modification of this Contract or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Contract, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed, and the parties further agree that the provisions of this section will not be waived unless as herein set forth XXXVI. INDEPENDENT CONTRACTOR FIRM shall provide services to CITY as an independent contractor, not as an employee of the CITY FIRM shall not have or claim any right arising from employee status XXXVII. MISCELLANEOUS A The following exhibits are attached to and made a part of this Contract Exhibit "A" - Request for Proposals, Exhibit "B" - FIRM's proposal B FIRM agrees that CITY shall, until the expiration of three (3) years after the final payment under this Contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the FIRM involving transac- tions relating to this Contract FIRM agrees that CITY shall have access during normal working hours to all necessary FIRM facilities and shall be provided adequate and appropriate working space in order to conduct audits in compliance with this section CITY shall give FIRM reasonable advance notice of intended audits C For the purpose of this Contract, the key persons who will perform most of this work hereunder shall be Debra Patton However, nothing herein shall limit FIRM from using other qualified and competent members of its firm to perform the services required herein PAGE 11 D FIRM shall commence, carry on, and complete any and all projects with all applicable dispatch, in a sound, economical, efficient manner and in accordance with the provisions hereof In accomplishing the projects, FIRM shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by the CITY E The CITY shall assist the FIRM by placing at the FIRM's disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project, and arranging for the access thereto, and make all provisions for the FIRM to enter in or upon public and private property as required for the FIRM to perform services under this Contract XXXVIII. TIME OF THE ESSENCE Time is of the essence with respect to all matters covered by this Contract XXXIX. CAPTIONS The captions appearing at the first of each numbered section are inserted and included solely for convenience and shall never be considered or given any effect in construing this Contract This Contract is executed on behalf of CITY by the presiding officer of its governing body who is authorized to execute this instrument by order heretofore passed and duly recorded in its minutes and by a partner of FIRM who, by execution of this Contract, represents and warrants that he or she has the authority to execute this document on behalf of FIRM WITNESS the signa*re of all originals this the 19 day of County, Texas ATTEST JENNIFER WALTERS, CITY SECRETARY p rties hereto in triplicate 1997, Denton CITY OF DENTON, TEXAS JAfK ILLER, MAYOR BY PAGE 12 APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY E \WPDOCS\K\DELINQUE TAX BLAIR, GOGGAN, SAMPSON & MEEKS BY �I- ST HEN T MEEKS, T R LAW OFFICE OF MIKE GREGORY BY )� MIKE GREGORY PAGE 13 EXHIBIT "A" CITY OF DENTON TEXAS April 15, 1997 Blair, Goggan, Samson, & Meeks, and Mike Gregory 2323 Bryan Street Dallas, TX 75201 REF RFSP #2032 - DELINQUENT TAX COLLECTION SERVICE Dear Blair, Goggan, Samson, & Meeks, and Mike Gregory The City of Denton, Texas will receive sealed proposals consisting of 3 copies until 2:00 p.m , May 13, 1997 for Delinquent Tax Collection Service This request for proposal is not a bid and will not be opened publicly The proposals will be received by the Purchasing Agent and no part of this request for proposal will be made public except as required by State Statute after award The City of Denton staff and City Council will review and evaluate the proposals Selection will be made by this process as stated further in this request for proposal All information, clarifications, or changes in content or instructions of this request for proposals must be submitted in writing to the Purchasing Agent at 901-B Texas Street, Denton, Texas 76201, Phone Number (817) 383-7100 Additional proposal documents may be requested by mail or picked up at the City of Denton Purchasing Department, 901-B Texas Street, Denton, Texas 76201 All questions or requests for more information regarding this RFSP of the City of Denton tax collections must be submitted in writing by 12 00 p in on May 1, 1997 Both questions and responses will be sent to all potential bidders Attached is a five year history of the City of Denton's delinquent tax collection percentages Please refer to this information when necessary Dedicated to Qualin Sen ti, April 15, 1997 Page 2 We are soliciting a proposal from your firm because of your capabilities in delinquent tax collection Proposals should be as brief as possible and include the following 1 A statement of firm's experience in delinquent tax collection, including years in the business, number of staff, office location, clients serviced (a list of clients with addresses, phone number and contact person should be provided) 2 Resumes of key managerial staff to be assigned as the City's representatives 3 Proposed scope of services to be offered based on the information attached 4 Suggested performance criteria for the City to utilize in evaluating the success of the contract and non-performance guidelines if collections do not equal sixty (60%) percent of the delinquent tax base amount Proposals will be evaluated based upon the attached criteria and interviews with selected firms If your firm is interested in making a proposal to the City of Denton for these services, three (3) copies of the proposal, in sealed envelopes marked on the outside RPSP #2032 - Delinquent Tax Collection Service, should be submitted no later than May 13, 1997 at 2 00 p in to City of Denton Purchasing Department 901-B Texas Street Denton, TX 76201 Attention Tom Shaw, Purchasing Agent We look forward to receiving a proposal from your fum for this very important service Sincerely, Tom D Shaw, C P M Purchasing Agent wp Attachments AAA04FEC I M N Q 0�0 V1 h N en v b R 00 v'f N N M M M 00 P M 00 0 end NN N e e e e e N O N 'o P a o N N opnpppg$e�, e e e e h Oe b � 0000 on+arnrna o No n o N O t1 NaoOO 00 M O M 00 v1 M N MMMOCD LL T e+Ni N 000 Q O O ai M O '- N M •Y n F} c rn c a c THE LAW FIRM WILL 1 Receive and review the delinquent tax rolls 2 Substitute as attorney of record on all existing tax suits and interventions, pay all court costs and filing fees related thereto 3 Perform all research and paperwork necessary to provide taxpayers and the City Tax Collector with correct or corrected information to update the City files, including forwarding addresses as located 4 Submit monthly status reports regarding suits filed on accounts and provide City Tax Collector with duplicate letters sent to taxpayers 5 Provide a quarterly report to City staff in sufficient form that it could be submitted to the City Council for review Provide monthly reports on pending suits, judgments and foreclosures 6 File suits on delinquent taxpayers that do not respond in accordance with the demand of and directions provided by the City of Denton 7 Intervene in delinquent tax suits filed by Denton County and/or Denton Independent School District, if applicable, pursuant to Sec 33 44, Property Tax Code 8 Firm shall be responsible for filing of delinquent tax claims in bankruptcy proceedings, including claims and actions required to be filed with Federal ageticies such as the FDIC, and consult with the City of Denton City Attorney's office on such matters 9 File suits for collection of delinquent taxes pursuant to Secs 33 41 and 33 42, Property Tax Code, or file suits of judicial foreclosure of tax liens 10 Pursue all suits diligently and provide reports to the City of Denton 11 Provide the City recommendations, for qualified individual taxpayers, pursuant to Sec 33 02, Property Tax Code, regarding the advisability of an installment agreement being entered into between City and taxpayer 12 Provide legal support and research to the City as needed a Provide recommendations to not pursue a case if a case is legally barred, is weak, or the likelihood of collection is low or uniikely b Provide City of Denton's Assessor/Collector with legal advice and wntten opinions upon request 13 Only collect those groups or individual accounts «hich the City of Denton determines in its discretion are to be collected by firm The Law Firm Will Page 2 14 Provide all supplies and postage necessary to handle billing and necessary mailings 15 Obtain appropriate title research and relevant ownership records of all property upon which a suit is to be filed, at firm's expense 16 Provide total and complete delinquent tax collection, including court filing fees and all other costs, pursuant to Secs 33 07 and 33 48, Property Tax Code, and will indemnify and hold the City harmless from any suits or liabilities that may result from the firm's delinquent tax collection activities 17 Propose a method of assuring that the amount of delinquent taxes collected by the Law Firm will be at least equivalent to the amount projected to be collected by in-house staff for each fiscal year of the firm's engagement 18 Propose a method of payment 19 Be entitled to fees on amounts actually collected while contract is in effect, pursuant to Sec 33 07 of Property Tax Code 20 Provide information concerning minority involvement regarding the work to be performed by your firm pursuant to this engagement Indicate the ethnic makeup and the gender of your staff, both at present and projected, if not presently fully staffed Also, indicate if you would consider sub -contracting parts of this contract to minority contractors and, if so, please describe your plan to do so Also indicate your compliance with EEOC regulations and guidelines ' 21 Coordinate the filing of all tax suits with the City Attorney and all tax collection efforts with the City of Denton Tax Department 22 Provide for the orderly delivery of copies of all complete tax files to be turned over to the City Attorney when the Contract is terminated 23 Make recommendations to the City Tax Department on accounts to be collected (i e mobile homes, aircraft and business personal property) by summary seizure (Tax Warrants) and diligently perform all legal work necessary to reduce those accounts to payment of taxes pursuant to Secs 33 21, 33 22 and 33 23, Property Tax Code 24 Maintain collection rate of at least sixty (60%) percent of the current delinquent tax base with a penalty clause initiated on the firm should be the collection rate fail to research 60 % 25 Provide concentrated effort toward the collection within the statute of limitation period of delinquent mobile home business personal property accounts The Law Firm Will Page 3 26 Upon request by the City, undertake the collection of delinquent accounts for special paving assessment liens, substandard housing demolition liens, and privileged (mowing) hens 27 Upon reasonable request, represent the City in the acquisition of property pursuant to the Property Tax Code for public purpose use 28 The firm should be willing to enter into a three year contract with the City with two additional one year optional extension periods being provided for A \�\WH4 AM CITY OF DENTON WILL 1 Provide a roll of delinquent accounts to be collected 2 Provide for updated information (1 e , adjustments, payments, errors, double assessments, or other discrepancies) on delinquent accounts to be forwarded to the law firm 3 Be able to terminate contract for any reason, with or without cause, upon thirty (30) days' written notice to the firm 4 Pay the law firm fifteen (15%) percent of the amount of all delinquent taxes, (pursuant to Sec 33 07, Property Tax Code), penalty and interest actually collected and paid the collector of taxes during the term of this contract The collector shall pay said funds to the firm monthly by check 5 Notify the law firm of any taxpayer that has filed bankruptcy, when the City has been notified of such 6 The City will allow firm an additional six (6) months to reduce to judgment all suits filed prior to the expiration date of the contract 7 Prepare and mail tax statements at least thirty (30) days [no more than sixty (60) days] prior to delinquency date, giving clear written notice to the delinquent taxpayers of the potential add -on costs of collection MY OF AuNTON CRITERIA FOR SELLCTING FIRM In order for all proposals to be reviewed in a consistent manner, please reference the following criteria by its reference number set forth below 1 Please provide a summary titled "Law Firm Summary," not to exceed three pages, that addresses the following questions a Is your law firm's principal business the collection of delinquent taxes9 b Please describe the extent of your law practice c Please describe, in detail, your firm's collection software and hardware and any established systems which you have in place regarding ad valorem tax collection d Do you currently collect delinquent taxes for other taxing entities in Denton County9 If yes, who9 e How many clients do you currently represent regarding the collection of delinquent taxes? f Where is your nearest office location to the City of Denton9 g Is your law firm affiliated with local counsels If so, who') How long has your firm been so affiliated9 h What is the total number of staff employed by your firm9 Please breakdown by the following categories Attorneys, Law Clerks, Paralegals, Legal Assistants, Legal Secretaries, Other Staff i What is the number of staff that will be responsible for the City of Denton's collection if your proposal is accepted) I What is the name(s) of the attorney(s) that will be responsible for the City of Denton's collections') k Is your law firm an Equal Employment Opportunity (EEO) employer) Is your firm agreeable to a performance goal, which is equal to, but not less than, 60% of the total dollar value of the base taxes collected as of July 1 of each year of the contract) 2 Firm must have an established history of expertise in the delinquent tax collection field and provide a complete list of past and current Texas clients including a five year summary of delinquent tax collections listed as a percent of base tax, excluding P&I, submitted to the firm for collection 3 Law firm has to show capability to statf and operations sutficient to etficiently process up to 25,000 delinquent accounts annually 4 Firm will have or will establish a Denton office by the date the delinquent accounts are turned over to firm and will provide a 1-800 number or other toll -tree service to its main otfice EXHIBIT "B" A PROPOSAL FOR THE COLLECTION OF DELINQUENT AD VALOREM TAXES FOR THE CITY OF DENTON Submitted by Blair, Goggan, The Law Office of Sampson & Meeks Mike Gregory Attorneys at Law Attorneys & Counselors at Law 326-G East McKinney 303 N. Carroll Blvd., Ste 100 Denton, Texas 76201 Denton, Texas 76201 (817) 383.4460 (817) 387.1600 May 1997 BLAIR, GOGGAN, SAMPSON & MEEKS ATTORNEYS AT LAW A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS 326G EAST MCKIN NEY STREET PO BOX 1527 DENTON TEXAS 762021527 (617) 383 4460 FAX (817) 3822529 May 13, 1997 The Honorable Jack Miller Mayor, City of Denton and Members of the Denton City Council 215 E McKinney Denton, Texas 76201 Re RFSP #2032 - Delinquent Tax Collection Service Dear Mayor Miller and Members of the City Council Blair, Goggan, Sampson & Meeks (BGSM) is very pleased to submit our proposal to resume delinquent tax collection services for the City of Denton Our previous representation of the City of Denton and the Denton Independent School District well positions our law firm to commit substantial resources to the collection effort for the City in a manner to ensure maximum collections We are pleased to continue the affiliation between Mike Gregory and BGSM The Law Office of Mike Gregory has assisted BGSM with our contracts in Denton County since 1986 Mr Gregory has practiced law m Denton since 1974 and maintains his own law office at 303 North Carroll Boulevard, Suite 100 As a former Denton ISD Trustee and an active member of the Denton community, Mr Gregory's assistance in our collection effort significantly enhances our program Since the beginning of our service to Denton taxing jurisdictions, he has assisted BGSM by acting as a liaison with Denton officials and in our litigation of tax cases Mr. Gregory will be dwectly mvolved with our collection program by sharing responsibility for litigating the City's tax cases with BGSM's attorneys and he will work directly with delinquent taxpayers and their attorneys to resolve their delinquencies He will be assisted in these efforts by his associate attorney, Charla Bradshaw BGSM has maintained an office in Denton since 1986 and has contributed greatly to the Denton community during the past ten years We conservatively estimate that we have spent more than $1.1 million in Denton during the past decade in support of our collection program As shown on the chart following this letter, two-thirds, or 66%, of our attorney fees from our Denton ISD contract stayed in Denton and were reinvested into the community in the form of salaries, rent, office expenditures, community -based contributions, etc The City of Denton can expect this same level of "return" to the community. DALLAS FORT WORTH AUSTIN ALLIANZ FINANCIAL CENTRE OIL d GAS BLD SUITE 1414 TEMPLE INLAND BUILDING 2323 BRTAN 5T SUITE 1920 309 W >TH ST 301 CONGRESS AVENUE SUITE 1030 DALLAS TEXAS 75201 FORT WORTH TEXAS 76102 AUSTIN TEXAS 7877014041 (214) 66010069 (80( 677 4569 (512) 496 7727 FAX (214) 754 7161 FAX (517( 877 0601 FAX (512) 476 8150 SHERMAN GREENVILLE 115 EAST LAMAR 2607 STONEWALL ST SHERMAN TEXAS 75091 GREENVILLE TEXAS 95404 (903) 893 4941 (903) 454 2059 FAX (903) 668-066B FAX (903( 454 9856 With an office established in Denton for more than ten years, employment of Denton residents and extensive community participation, we believe BGSM has established itself as a local, Denton law firm. Together, the Law Office of Mike Gregory and BGSM have served the Denton community for a combined 32 years. Our proposal offers the City of Denton a continuation of the premier tax collection program available in Texas Our collection efforts have been customized for Denton so they are carried out for Denton taxpayers by Denton citizens. BGSM, in conjunction with Mike Gregory, represented the City of Denton from July 1986 through June 1993 During that time, we collected $5,446,106 in delinquent taxes, penalties, interest and attorney fees for the City, filed 1,324 lawsuits and mailed more than 19,000 demand letters In spite of a current year "turnover" that decreased 43% over our last four years of representation, we were still able to consistently increase delinquent collection effectiveness In 1992, BGSM was successful in also being hired by the Denton ISD, which had been previously represented by McCreary, Veselka, Bragg & Allen During the first 12 months of our representation of Denton ISD, we achieved a 18% increase in collections, which resulted in an additional $222,161 in revenue for the Denton LSD We are proud of our success at both the City of Denton and Denton ISD, however in July 1993 the City chose to change law firms to McCreary, Veselka, Bragg & Allen, and their newly formed Joint venture with the local, politically active firm of Hayes, Coffey & Berry In a similar manner, the Denton ISD School Board changed to the law firm of Sawko & Burroughs in January 1997 In both decisions to change law rums from BGSM, the elected body was divided in its decision because BGSM's performance had been exemplary We believe an objective review of our performance will affirm our ability to provide the leading collection program in Denton We want to emphasize that we have always valued our relationship with the City of Denton We greatly regret the City and School District chose to change law firms in spite of our excellent performance and would welcome the chance to once again represent the City of Denton BGSM's established presence in the Denton community will immediately be put to use for the benefit of our City of Denton collection program. We once again pledge to the City of Denton to provide the highest level of performance and conduct our program with the highest degree of professionalism. Blair, Goggan, Sampson & Meeks, along with Mike Gregory, is proud of our past record of collection performance for the City of Denton We once again offer the City our exceptional collection program which we believe will increase the City's delinquent revenue collections We would consider it a privilege to again represent the City of Denton and look forward to discussing this proposal with you and addressing any questions you may have If the City should revise its criteria at any time during the selection process, we would welcome the opportunity to negotiate any additional desired services or enhancements with the City We appreciate your consideration of our proposal Sincerely, Stephen T Meeks Partner Blair, Goggan, Sampson & Meeks cc Tom Shaw, Purchasing Agent Mike Gregory Attorney Law Office of Mike Gregory 41 kj Highlights of the Proposal • Blair, Goggan, Sampson & Meeks (BGSM) has achieved unparalleled success in the field of delinquent tax collection in Texas, as evidenced by our 72 clients in North Texas, including the cities of Dallas, Arlington, Carrollton and Sherman, in addition to Dallas, Tarrant, Hunt and Grayson counties Because of our size, we have the depth of staff and computer resources to tailor our collection program specifically to meet the needs of the City of Denton • Because of our previous representation of the City of Denton and Denton ISD, no other law firm is more familiar with Denton taxpayers and the community BGSM's established presence in the Denton community ensures a smooth transition will be accomplished, with no disruption to the Tax Office. BGSM is completely prepared to commit our substantial resources and expertise to implement a successful collection program for the City of Denton. • BGSM offices are strategically located in six (6) cities throughout North Texas, including Denton, Dallas, Sherman, Fort Worth, Greenville and Austin Our Denton office, which is supported by our North Texas (Dallas) Regional office, will be assigned to represent the City of Denton Mr. Steve Meeks, a BGSM Partner, will serve as our lead attorney responsible for representation of the City. • The Denton law firm of Mike Gregory will assist BGSM in providing the City of Denton with the most effective tax collection services possible As local counsel, Mr Gregory provides an increased level of local expertise which will enhance our delinquent tax collection program for the City He will also play an important role in representing the City in delinquent tax collection litigation efforts by personally appearing in Court in delinquent tax cases. • BGSM has maintained an office in Denton since 1986. Our law firm has expended $1 1 million during the last ten years in Denton with local employees, vendors and suppliers in support of our collection program Furthermore, 66% of the revenue generated by our Denton contracts is locally retained • We believe that to represent our clients effectively, we must be involved in the coimunity. Examples of our law firm's community involvement throughout the Denton area are participation in Chamber of Commerce activities, the BGSM/Honeywell Teacher Mini Grant program, the Denton Special Olympics, our adopt -a -school program, contributions to United Way and other community groups • Our collection program comprises an innovative mix of diverse disciplines including computer science, telephone collections, property ownership and location research, traditional trial advocacy, post -judgment enforcement, bankruptcy representation, federal agency collection efforts and seizure activity Our collection program is designed to serve as an extension of the client's tax office and, by virtue of our complete collection services, will be able to reduce the burden on the City staff. • Our data processing capabilities are "second to none" in the field of delinquent property tax collection. Our management reporting, case tracking and document production and bankruptcy tracking systems all demonstrate the sophistication of our computer applications in the field of delinquent tax collection We regularly provide information to our clients which assists them in their budgeting, forecasting and management of their governments • An Austin office is maintamed by BGSM to keep abreast of the latest legislative matters, Attorney General opinions, and interpretations of the Property Tax Division of the State Comptroller's Office and the decisions of the Supreme Court of Texas Through this office we are available to provide legislative assistance to all of our clients TABLE OF CONTENTS Transmittal Letter Highlights of the Proposal I Law Firm Summary (RFP Selection Criteria 1-4) 1 II Introduction to the Firms (RFP Selection Criteria 1 a-b, 2, 3) 7 III Collection Performance 9 Collection Experience in Denton 13 Client References 18 IV Project Team and Offices (RFP Selection Criterion 1 f-j, 3, 4) 19 BGSM's Denton Office 19 The Law Office of Mike Gregory 20 BGSM's North Texas (Dallas) Regional Office 20 Project Team for the City of Denton 20 Resumes of Key Individuals 21 V Community Involvement 28 VI Scope of Services (RFP Selection Criterion 2) 31 Workplan and Methodology 32 Customized Workplans 33 Taxpayer Notification Program 37 Address Research/Taxpayer Location Program 41 Taxpayer Assistance Program 45 Litigation Process 47 Bankruptcy 52 Federal Agency Collections 54 Public Service Information 55 Miscellaneous Revenue Collections 55 Ancillary Legal Services 55 Management Information Reporting and Coordination 56 VII Data Processing Capabilities (RFP Selection Criterion 1 c) 57 Vlll Equal Employment Opportunity and Affirmative Action (RFP Selection Criterion 1 k) 64 IX Suggested Performance Criteria 66 X Division of Responsibilities Responsibilities of the Law Firm Responsibilities of the City of Denton Performance Commitment (RFP Selection Criterion 1 1) XI Attorneys Fees Appendix A Client Listing Appendix B Sample Letters 68 68 70 70 71 I. Law Fuze Summary (RFP Selection Critteria 1-4) As requested by the RFP, the following pages are provided in direct response to the City's "Criteria for Selecting Firm," (1.A-L). A. Is your law fum's principal business the collection of delinquent taxes9' BGSM's principal and only business is the collection of delinquent ad valorem taxes and governmental receivables Beginning in the early 1980's our law firm was one of the pioneers in the field of delinquent tax collection Over the past 16 years we have grown to become the largest and most successful delinquent tax collection law firm in Texas We have achieved this status by limiting our practice exclusively to tax collection and by continually working to improve our collection program Our law firm represents 8 of the 10 largest taxing jurisdictions in Texas. We have collected over $1.9 billion in delinquent revenue for Texas cities, counties and school districts in the past sixteen years B Please describe the extent of your law practice. Our practice is dedicated to the collection of delinquent ad valorem taxes in Texas. Each year our law firm processes more than 2,000,000 delinquent tax accounts for our clients throughout Texas and annually collects over $185 million in delinquent taxes on a statewide basis. We mail approximately 1,500,000 demand letters each year, in addition to preparing more than 30,000 lawsuits. We employ more than 300 individuals and serve taxing jurisdictions from our 17 offices throughout Texas C. Please describe, in detail, your firm's collection software and hardware and any established systems which you have in place regarding ad valorem tax collection Through our subsidiary computer company, United Governmental Services of America (UGSA), we have developed customized tax collection software used by local governments throughout Texas For delinquent tax collection purposes, we use our copyrighted Case Tracking System (CATS), DELTAX and Bankruptcy Tracking System (BATS) to support our collection program UGSA also provides collection software to local tax offices for the collection of current ad valorem taxes The system is currently in place for Dallas County, the City of Dallas and the Houston Independent School District The hardware which supplements our collection program and runs our software is best described by the volume of services it is capable of providing Annually, UGSA processes over 2,000,000 delinquent tax accounts, mails 1,500,000 demand letters and prepares 30,000 lawsuits. Additional detail is provided in Section VII. Data Processing Capabilities of our proposal Page 1 D Do you currently collect delinquent taxes for other taxing entities in Denton County P If yes, who9' Our clients in Denton County are Denton Levy Improvement District #1 and Denton Road Utility District #1 In addition, BGSM collects delinquent taxes for the City of Carrollton, Prosper ISD and the City of Disco which have accounts located in Denton County BGSM represented Denton ISD until January 1997 and we are currently in the process of concluding our collection efforts on behalf of the School District We also have experience representing the City of Denton, the Town of Bartonville and the City of Krugerville E How many clients do you currently represent regarding the collection of delinquent taxes? BGSM currently represents 72 taxing jurisdictions in the collection of delinquent ad valorem taxes Because BGSM's operations are focused exclusively on North Texas, all 72 of these clients are concentrated in Denton, Tarrant, Dallas, Grayson, Johnson, Collin and Hunt counties. A complete listing of BGSM's clients is provided in Appendix A. On a statewide basis, our law firm represents over 200 clients, including 8 out of 10 of the largest taxing entities in Texas We represent Harris, Dallas, Tarrant and Bexar counties, the City of Dallas and Dallas ISD, Houston ISD, the City of San Antonio and San Antonio ISD F Where is your nearest office location to the City of Denton � BGSM has maintained an office in Denton since 1986. It is located in Denton at 326-G East McKinney Street (directly across from the Civic Center) G Is your law firm of tthated with local counsel? if so, who 9' How long has your firm been so gffihateV Our law firm has been affiliated with the law office of Mike Gregory as local counsel since 1986. In addition to serving as a liaison to local officials, Mr. Gregory will participate directly in our collection program by representing the City before the Court in tax litigation cases H What is the total number of stiff employed by your firm 9' Please breakdown by the following categories. Attorneys, Law Clerks, Paralegals; Litigation Assistants, Legal Secretaries, Other Stqff The combined staff of BGSM, operating in North Texas, and Heard, Goggan, Blair & Williams, operating in South and Central Texas, is composed of 300 in the following categories Attorneys 33 Legal Secretaries 16 Paralegals 22 Collectors/Researchers 74 Legal Assistants 63 Administrative Support 35 Bankruptcy Assistants 17 Data Processing Professionals 40 Page 2 I What is the number of staff that will be responsible for the City of Denton's collection if your proposal is accepted 9' The following 11 individuals will have primary responsibility for our collection program for the City of Denton: Mike Gregory, Local Counsel Debbie Patton, Denton Office Manager Charla Bradshaw, Local Counsel Ralph Roberts, Abstractor Stephen T Meeks, Partner Dana Markham, Denton Litigation Assistant DeMetris A Sampson, Partner Gary Bennett, Attorney Nancy R Primeaux, Regional Manger Edward Lopez, Attorney Beth Weller, Bankruptcy Attorney In addition, the collection efforts of our Denton staff will be supported by our North Texas Regional Office in Dallas which is staffed by 50 tax collection professionals Our computer support staff totals more than 40 programmers and technicians J What is the name(s) of the allorney(s) that will be responsible for the City of Denton's collections? The attorneys with primary responsibility for our Denton collection program will be BGSM's Partner Steve Meeks and Mr. Mike Gregory They will be supported on an as needed basis by Mr Gary Bennett, Mr. Edward Lopez and Ms. Charla Bradshaw In addition, BGSM's bankruptcy attorney, Ms. Beth Weller, will be responsible for all of the City's accounts in bankruptcy K Is your law firm an Equal Employment Opportunity (EEO) employer? BGSM is not only an Equal Employment Opportunity employer, we are the industry leader in providing opportunities for minorities and women As evidence of our commitment to Equal Employment Opportunity, we offer our current staff distribution Of BGSM's 54 staff members in our Denton and Dallas offices, 66% are minorities and 76% are women. We are confident that no other delinquent tax collection law firm can approach the participation level we have achieved of minorities and women For the past five years, our North Texas office has expended over $1.5 million annually with minorities and women Section VIII Equal Employment Opportunity and Affirmative Action provides additional detail regarding our Equal Employment Opportunity and Affirmative Action programs L Is yourfirm agreeable to a performance goal, which is equal to, but not less than, 60% of the total dollar value of the base taxes collected as of July I of each year of the contract9, Based upon our past success for the City and Denton ISD, we are confident that we will be able to meet the City's performance goal We commit that our collections will total at least 60% of the total amount of base tax of current year delinquency that exists on July 1 (the new "turnover" roll) by the end of the twelve month period beginning July 1 and ending June 30 We will maintain this performance standard during each year of the contract Page 3 2 Firm must have an established history of expertise in the delinquent tax collection field and provide a complete list of past and current Texas clients including a five year summary of delinquent tax collections listed as a percent of base tax, excluding P&I, submitted to the firm for collection Not only does BGSM have an established history in delinquent tax collection, we have a proven history serving the City of Denton and Denton ISD specifically in the collection of taxes From 1986 until 1993 and from 1992 until 1997, BGSM and Mike Gregory provided collection services to the City of Denton and Denton ISD, respectively Jurisdictions of all sizes throughout North Texas have also contracted with BGSM for extended periods of time after recognizing the quality of BGSM's collection program A list of BGSM's 72 clients in North Texas is provided in Appendix A Some of our long-term clients include • City of Dallas (since 1983) • Tarrant County (since 1982) • Dallas ISD (since 1983) • Hunt County (since 1985) • Dallas County (since 1984) • City of Sherman/Sherman ISD (since 1990) Our law firm operates under the name Heard, Goggan, Blair & Williams (HGB&W) in South and Central Texas HGB&W also has a rich history representing taxing jurisdictions for delinquent tax collection services • Houston ISD (since 1984) • Harris County (since 1995) • Bexar County (since 1980) • San Antonio ISD (since 1982) • City of San Antonio (since 1985) A listing of our former clients is also provided in Appendix A. As requested, we are submitting a five year summary of delinquent tax collections. Rather than providing an aggregate of our total collections ($185 million each year) for our 200 clients throughout the State, we felt it would be more meaningful and responsive to choose three representative clients for the City of Denton These clients are Denton ISD Most similar to the City of Denton due to shared account base City of Dallas/Datlas ISD Largest jurisdictions in North Texas City of Sherman Similar City in proximity to Denton The following three tables detail our delinquent tax collections (total tax plus penalty and interest) as a percent of the base tax, excluding penalty and interest, that has been submitted to our law firm for collection Page 4 This summary of delinquent tax collections also provides an excellent measure of effectiveness We are pleased to be able to demonstrate that each of our three representative clients has recognized an increased level of effectiveness over the past five years Furthermore, we have recently concluded our most effective/successful year ever for all three clients The 1995/96 effectiveness ratios are as follows Denton ISD 153 % City of Dallas/Dallas ISD 148 % City of Sherman 135 % In addition, detailed and verifiable statistical information concerning our collections experience in Denton and throughout North Texas is provided in our proposal These charts and tables demonstrate the strong performance we have consistently provided for jurisdictions which have chosen $GSM's collection program For additional information, please see Section H. Introduction to the Law Firms and Section III. Collection Performance. Page 5 L V� h ON ON ON .—I Ch M o, GCi I P [^ n �+ N In y A ? n U � t A U Ca I W a c a . ^I 0 Pam w ONO J� A iJ eC a CCU i.l Ono F� r 0 w o � 0 0 O� F v3� n y� II N j II ill jo NCI c? I a �+ j itya 00 ooA Y N x O in v eq > F o I I U A I tft 0 8 f� di f9 di fA b9 69 CPA wo O ._ roll N yy i G 'n a N F I U C p v O ool G M O O O,I h r 6s O C i �n M etl i O N i C D, ni oo l O oM Ill FT a n N N N 3 Law fum has to show capability to stiff and operations sufficient to efficiently process up to 25, 000 delinquent accounts annually. Through successful collections, BGSM has demonstrated that we have sufficient staff and resources to process the delinquent accounts of the City of Denton Our Denton office, at its current staffing level, provided collection services to the Denton ISD from 1992 until January 1997, thereby affirming our ability and capacity to process the City's delinquent accounts Furthermore, BGSM has the resources which allow our law firm to serve the largest taxing Jurisdictions in the State, including Dallas, Tarrant, Bexar and Harris counties We process over 2,000,000 delinquent accounts per year. Some of our larger clients include Chent BGSM Dallas County City of Dallas\Dallas ISD Tarrant County Grayson County HGB&W Harris County Houston ISD Bexar County City of San Antonio San Antonio ISD Detinquent Accountc 78,635 56,582 59,155 11,499 244,027 123,478 57,385 43,516 17,552 BGSM employs a staff of over 75 and Heard, Goggan, Blair & Williams employs 175, including 40 computer specialists that will be responsible for the data processing support for the City of Denton contract For additional information, please see Section II. Introduction to the Law Firms, Section IV. Project Team and Offices and Section VII. Data Processing Capabilities. 4 Fum will have, or will establish, a Denton office by the date the delinquent accounts are turned over to firm, and will provide a 1-800 number, or other toll free service, to its main office Since 1986, BGSM has maintained a full -service office in Denton for the purpose of collecting delinquent taxes In the past decade, BGSM has expended $1.1 million in Denton, an amount equal to 66% of the revenue generated by our Denton contracts Our Denton staff is available to work with taxpayers in person or by telephone (817-383-4460) to resolve their delinquency In addition, a toll -free phone number (1-800-441-0960) continues to be available to the residents of Denton so that they can reach the taxpayer assistance unit in our North Texas Regional Office in Dallas The advantage provided by BGSM's Denton office is the experienced staff which is familiar with Denton taxpayers In addition, our Denton collection program has the reputation for fair, yet serious, pursuit of payment for delinquent taxes Page 6 ll. Introduction to the Law Firms (RFP Selection Criteria I a-b, 2, 3) Blair, Goggan, Sampson & Meeks (BGSM) is a statewide law firm principally engaged in the collection of delinquent ad valorem taxes with extensive experience and credentials in collection services and software BGSM is the leader in delinquent tax collections in North Texas by virtue of collecting more tax revenue, by far, than any other law firm and has effectively collected delinquent taxes in Denton since 1956. We originated the philosophy of designing tax collection programs that maximized revenue at the least cost and administrative burden to the client By pioneering a high technology approach to the delinquent tax collection process, our law firm became the first to offer a state-of-the-art collection program that was aggressive, but fair, and met the individual needs of the client Our collection program comprises an innovative nux of diverse disciplines including telecommunications, mass and specialized mailings, address and ownership skip -tracing research, traditional trial advocacy and post -Judgment enforcement We tailor our collection program to meet the individual needs of each client To ensure fairness and equity, BGSM provides taxpayer assistance in each office and information for the taxpayer in both English and Spanish BGSM's professional staff of 75 persons consists of attorneys, certified public accountants, system designers, analysts, computer programmers, managers, finance specialists, public relations specialists, paralegals, collectors, researchers, clerks and secretaries In order to serve our clients, the BGSM staff is strategically located in six offices throughout North Texas All of our offices are dedicated exclusively to the collection of delinquent taxes and other governmental receivables and are located in • Denton • Dallas • Fort Worth • Sherman • Greenville • Austin The history of our law firm demonstrates the strength of our statewide operations In January of 1980, the firm of Heard, Goggan & Blair was formed for the sole purpose of collecting property taxes and was successful in establishing regional tax collection centers in Dallas, Tarrant and Bexar counties In January of 1986, Heard, Goggan & Blair merged with Houston -based Blair, Williams & Harrison In June of 1993, Heard, Goggan, Blair & Williams reorganized and separated its North Texas operations for management and administrative purposes This was done to achieve maximum flexibility in focusing on local problems, concerns and opportunities and to recognize the increased leadership roles of its resident partners DeMetris A Sampson in Dallas and Stephen T Meeks in Fort Worth This reorganization was reflected in our law firm's North Texas name change to Blair, Goggan, Sampson & Meeks Page 7 Heard, Goggan, Blair & Williams (HGB&W) represents our Central and South Texas clients with offices in the following nine (9) locations • Houston • San Antonio • Beaumont • Conroe • The Woodlands • Richmond • Angleton • Laredo • Brownsville Our experienced and well -trained personnel contribute to our overall success in the industry The combined strength of our law firm and its 300 employees throughout the State has made us the leader in delinquent tax collection programs. Collectively, our law firm collects more than $185 million in delinquent property taxes each year for taxing jurisdictions throughout Texas We have collected over $1.9 billion since 1980 The Law Office of Mike Gregory consists of two attorneys, Mike Gregory and Charla Bradshaw, both graduates of Denton High School The attorneys are supported by three legal assistants, one of whom is a graduate of Denton High School and two of whom currently have children in the Denton Independent School District Co -counsel Mike Gregory, a graduate of the University of Texas School of Law, has maintained a law office in Denton since 1974 He is a respected Denton attorney and has previously served as president of the Denton Bar Association Charla Bradshaw graduated from the SMU School of Law in 1993 and is active in many legal and civic activities Both Mr Gregory and Mrs Bradshaw are certified mediators In addition, Mr Gregory is a certified matrimonial law arbitrator Mr Gregory and Mrs Bradshaw have effective working relationships with judges, clerks, deputy sheriffs and constables in Denton County, who are necessarily involved in the collection process Mr. Gregory and Mrs. Bradshaw will represent the City in tax lawsuits in conjunction with BGSM's attorneys. They will have direct involvement with taxpayers to assist m resolvmg delmquencies owed to the City of Denton. Mr Gregory will also monitor the program's collection efforts and act as a liaison with local officials Page 8 III. Collection Performance BGSM's ability to collect delinquent taxes has been demonstrated in the City of Denton, Denton ISD and numerous other clients in North Texas The following charts compare our effectiveness to that of the City's current firm, McCreary, Veselka, Bragg & Allen (MVBA) and demonstrate the long term effectiveness of our collection program The undeniable conclusion to be drawn from these comparisons confirms the superior collection performance of BGSM Chart 1: Fust Year Performance Comparison We have found that clients which have switched to BGSM after retaining other law firms have consistently achieved significantly higher collection rates in the year following the change. This trend has been evident throughout our history of performing delinquent tax collections for the City of Denton and Denton ISD Recognizing that the City of Denton is attempting to evaluate and quantify performance from various law firms, we are including the following charts which capture performance data for the City of Denton and Denton ISD In each case, either after BGSM was retained or when the City switched from BGSM, collection performance dramatically changed As shown on the first chart on the following page, when the City of Denton hired BGSM in 1986, we were replacing a small Denton firm, Lewis & Coffey Upon bemg hued, BGSM increased collections by 122%, resulting in an addition $357,551 m revenue for the City. When the City of Denton changed to McCreary, Veselka in 1993, collections decreased 16%, or $69,406, from our last year of performance This change is shown on the middle chart on the following page In our final year of representation of the City, BGSM collected $445,541 During MVBA's first year, the City of Denton's collections dropped to $376,135 (This total does not include the multi -year Peterbuilt account that was paid during MVBA's first year, after resolution of a value lawsuit filed against the Denton Central Appraisal District Upon resolution, the account was paid timely, but through no effort of either delinquent tax law firm, and was never considered a delinquent account) Denton ISD also benefitted from the immediate impact of our collection program when the School District selected BGSM in 1992 In our first year of collections for Denton ISD, we increased collections by $222,161, an 18% increase. We continued to effectively collect delinquent taxes on behalf of Denton ISD until the School Board changed law firms in January 1997 and invite you to contact Gilbert Bernstein, Assistant Superintendent, or Kathy Arrington, Tax Liaison, at the Denton ISD to discuss any aspect of the program we provided the School District The evidence of this trend is overwhelming. Stated simply* the City of Denton and Denton ISD have consistently received higher collections with BGSM and lower collections when usmg other law firms Page 9 7 rA �I O Q e g u on Chart 2. Collection Effectiveness Comparison In addition to providing a more effective collection program in our first year of performance, BGSM also consistently maintains a higher level of effectiveness in subsequent years The following chart, entitled Collection Effectiveness Comparison, evaluates BGSM's performance for Denton ISD for the period July 1995 through June 1996, the last complete collection cycle, to McCreary, Veselka, Bragg & Allen's (MVBA) efforts for the City of Denton during the same period Last year BGSM collected 64.44% of the current year base tax turned over to our law firm by Denton LSD, while MVBA collected 63.14% for the City of Denton As demonstrated on the chart, BGSM provides a 1.3% higher collection percentage than MVBA The City has established a guideline that 60% of the current year base tax turnover will be collected within the following twelve months This chart demonstrates our ability to meet this expectation and outperform your current firm This is an especially meaningful comparison because the City and the School District share many of the same delinquent tax accounts Because the contingency fees are established by State law, a delinquent tax collection contract is primarily about selecting the law firm which will collect more revenue for a taxing Jurisdiction In comparison after comparison, BGSM has demonstrated that it is more effective than any other law firm when it comes to collecting delinquent taxes in Denton. Although the performance of either law firm would meet the City's collection performance goal of 60%, the City would have collected more revenue if the level of performance which BGSM's provided Denton ISD had been provided to the City. Page 10 Collection Effectiveness Comparison Blair, Goggan, Sampson & Meeks vs. McCreary, Veselka, Bragg & Allen July 1995 - June 1996 70% 65% 60% 53% 50% Current Year Base Tax Collections (7/95.6/96) expressed as a percent of Current Year Base Tax Turnover on 711195. Charts 3-6: Historical Collection Performance BGSM has represented the largest taxing jurisdictions in North Texas since the early 1980's. Year after year, we have exceeded our own high level of service and collections for the City of Dallas/Dallas ISD and Dallas, Tarrant and Hunt counties which are presented on the following charts These charts demonstrate additional evidence of our law firm's ability to increase collections in our fh* year of service for a taxing jurisdiction However, the charts also demonstrate the "staying power" of our collection program Our clients can depend on BGSM to maximize their delinquent revenue collections Page 11 10 alA rl G� • b � � �e Q pomm U �� • rmw �1 � a Q A n � N GO 'fl u CO tZ o pa t N b D C m O 00 0 0 0 ono oho "C N a> o �44j 0000 ad 00 00 a� \ O C 0] b cr y C d � PC o d y o a c 00 "a a c y ON o U 00 00 o N M � � � d n b � R f� N rl Vi as tft 4 , O 00 •e o u as q kn 3 y � C .fl o �. •r tV w d CO O r,4o A c r0 N U � � b s„ 000 ON � N rb cm 0) HS A ODcc .� r o0 00 0o G q Q, o *cat Q y H in D' a 0\0 0000 q 01 0000 �a r Os C, y n00 u ono ono � 0 VI O in O — N H d4 to � to us A� W u pwo O `n ao � 00 17) ^ � a � O U i L� �N 1�1 N IE: V1 d' M fV WR 69 609 Vi bm I v z A PME" o U N Q Tel V N n �M Ill O � Q Q PENN r� q U s_ 3 Charts 7-10: First Year Collection Comparisons with Other Law Furors Recognizing that maximizing revenue is critical for all taxing Jurisdictions, we are including the following information and charts for taxing entities which have become BGSM clients within the past few years These comparisons graphically demonstrate the superior collection results achieved by BGSM over each client's former law firm In every instance, collection performance dramatically increased after BGSM was retained BGSM's increased collections are shown below CLIENT BGSM PERCENTAGE INCREASE BGSM DOLLAR INCREASE FORMER LAW FIRM City of Carrollton 112 7% $309,203 Nichols, Jackson, Dillard, Hager & Smith Lancaster ISD 15 2% $91 094 Perdue, Brandon, Fielder City of Arlinton 11 3% $210 579 Perdue, Brandon, Fielder Grand Prairie ISD 41 3% $260,233 Wright & Associates We encourage you to contact any of these clients concerning our continued high performance and the level of service we provide on their behalf These collection figures have been certified and verified by our respective clients Page 12 City of Carrollton Collections Blair, Goggan, Sampson & Meeks Increases Collections 112967% in First Year after Nichols $500 $250 Nichols, Jackson, Dillard Hager & Smith $274,444 >f4 ,R Blair, Goggan, Sampson & Meeks . Y. �a $0 3/86-2/87 0 During Contract with Nichols During First Year of Contract with BGSM $583,647 3/87-2188 Lancaster ISD Collections Blair, Goggan, Sampson & Meeks Increases Collections 15.20% Blair, Goggan, Sampson in First Year After PBF & Meeks $750_ Perdue, Brandon & $6919770 Fielder $600,676 $500 0 During Contract with Perdue, Brandon & Fielder During Contract with Blair, Goggan, Sampson & Meeks City of Arlington Collections "JL"JLig %xvsr aaj Sampson & Meeks Increases Collections 11,31% in First Year After PBF Blair, Goggan, Sampson & Meeks Perdue, Brandon & $290729744 Fielder $2,100 $19862J65 $1,600 -1 I I ' $1,100 $600 $100 7l89-6/90 7/90-6/91 During Contract with Perdue, Brandon & Fielder During Contract with Blair, Goggan, Sampson & Meeks Grand Prairie ISD Collections Blair, Goggan, Sampson & Meeks Increases Collections 41 `2 7% $8909759 in First Year of Collections $7501 $6309526 = s� $250 $o v 7/92-6/93 7/93-6/94 0 Prior to Contract with BGSM ME During First Year of Contract with BGSM In order to fully describe the effectiveness of BGSM's collection program, it is necessary for us to describe the program we developed and the results we have accomplished in Denton In the following pages, we will provide excerpts from our recent proposal to Denton ISD We include this information to further demonstrate the comprehensive nature of the collection program we have implemented in Denton, the effectiveness of our program and our detailed knowledge of the Denton delinquent tax roll The undeniable conclusion to be drawn from the result of our Denton ISD collection program is that BGSM and Mike Gregory are prepared to provide the City of Denton with an excellent collection program. As additional validation of our success on behalf of the School District, we have included a letter of recommendation from Gdbert Bernstein, Assistant Superintendent for Administrative Services for Denton ISD Mr. Bernstein's letter confirms BGSM's successful performance on behalf of Denton ISD and verifies the School District's decision to change law firms was not based on performance As shown on the following page, entitled Program Ifighlights for Denton ISD, BGSM provided the School District with a comprehensive and effective collection program The results of our program included • Collections- We collected over $7 million for the School District from 1992 until 1996, including almost $1,000,000 in early business personal property and mobile home collections Our early collection efforts were the result of a customized collection effort designed specifically for Denton ISD in response to the high level of business personal property and mobile home delinquencies in Denton • Increasing Revenue: When our proposal was submitted to Denton ISD in October 1996, our collections for the first nine months of 1996 were 29% higher than in the previous year, a sign of the continuing strength of our collection program • Turnover Dechne. We maintained a very effective collection program for the School District despite being given fewer current year tax dollars to collect The School District's turnover declined 49% from 1991 until 1995 Our continued effectiveness despite the declining turnover is another example of how our performance was not the reason for the change in delmquent tax collection law furls. • Comprehensive Collection Effort: BGSM takes pride in our complete collection program As shown on the highlights page, we provide all types of collection activities, including Page 13 Denton Independent School District Office of the Assistant Superintendent for Administrative Services P O Box 2387 Denton, Texas 76202 May 9, 1997 Gentlemen During the years January 1, 1992 through December 31, 1996, the law firm of Blair, Goggan, Sampson, and Meeks represented the Denton Independent School District it the collection of its delinquent accounts The firm did a good lob with delinquent tax collections, and the district was very pleased with their work An independent analysis by the district's independent auditor indicated that their percentage of collections over the prescribed time period exceeded the collection percentage of other firms hired by the district in the past Blair, Goggan, will do an excellent lob in delinquent tax collection If there are any questions, please contact me Sincerely, Gilbert Bernstein c Dr Albert Thomas Ms Kathy Arrington Program Highlights for Denton I.S.D. January 1992 - September 1996 1. Total Collections: ► Delinquent Collections $6,0659462 ► Early BPP/Mobile Home Collections $983 401 Nine Month Collection Comparison (Jan -Sept): Delinquent Early Tax BPP/MH Total Increase 1/95-9/95 $7609594 $2469757 $11,0079351 > $2919165 1/96-9/96 $190539770 $2449746 $192989516 29% II. Turnover Decline: Current Year Law Firm Date Delinquency Decrease MVBA BGSM July 1991 July 1992 $1,503,188 $1,091,794 <$7359234> BGSM July 1993 $1,047,300 <49%> BGSM July 1994 $929,916 BGSM July 1995 $767,954 5 Year Decline BGSM July 1996 $843,065 III. Other Activities: ► Lawsuits Filed ► Lawsuits Disposed ► Tax Sales/Writs ► Bankruptcy ► Demand Mailings 958 lawsuits for $1,855,448 738 lawsuits 77% 13 since Jan 1996 267 accounts for $374,560 18 mailings for 28,636 letters litigation, tax sales, bankruptcy representation and demand mailings Any program element desired by our clients can be provided through our comprehensive collection program The effectiveness of our collection program for Denton ISD was remarkable We are extremely proud that the effectiveness of our collection efforts increased by 58% from the School District's previous law firm's efforts. This increase occurred despite the amount of delinquent taxes bemg turned over to our law firm for collection having decreased by 49%. The true measure of a successful collection program is the effectiveness ratio which measures the relationship between the total delinquent collections (tax, penalty and interest) achieved for a jurisdiction as a product of the amount of base tax turned over for collections Using this measure, BGSM's and Mike Gregory's effectiveness mcreased from McCreary Veselka, Bragg & Allen's performance of 95% for the 1991/1992 collection cycle to our 153% in the 1995-1996 collection cycle. In other words, of the dollars turned over to us for collections, our efforts were 58% more effective over the past five years This increase in effectiveness is detailed on the following chart entitled BGSM/Mike Gregory Performance for the Denton ISD. We believe a similar increase in effectiveness will be aclneved for the City of Denton. BGSM's knowledge of the Denton area delinquent tax roll is unparalleled Our industry -leading data processing capabilities allowed us to stratify Denton ISD's delinquent tax roll over the last five years Because the City and School District share the same delinquent accounts, we present this analysis of the School District's delinquent tax roll to demonstrate the knowledge we have already accumulated regarding the City's delinquent tax roll Collection performance is greatly determined by both the economy and the makeup (age, property type and size) of the delinquent tax roll to be collected BGSM analyzes each client's delinquent tax roll on a regular basis in order to customize our collection program to maximize collections. As an example, we have included a Denton ISD September 1996 tax roll analysis for your review This information illustrates both the depth of our familiarity with the Denton tax roll and our ability to analyze a tax role in a meaningful manner BGSM continually monitors the status of the tax roll in order to customize our collection program This information is useful in developing the collections and litigation strategies, assisting in forecasting revenue projections, as well as enhancing our knowledge of the composition of our clients' tax roll Page 14 rA rA = 50 e CCi UPC rO� V •^y 0 W it Ca Ono rA .POO AAma W W 0 .PM4 ME* ^V f� E r 8 c w r As of September 1996, the delinquent tax roll for which BGSM and Mike Gregory had the responsibility to collect comprised tax years 1995 and prior This delinquent tax roll for Denton ISD/CED included 4,921 accounts that totaled $2,366,964 in base tax The respective amounts of outstanding delinquency for Denton ISD and Denton CED were $2,141,389 and $225,575 The table below summarizes the delinquent tax roll for Denton ISD and Denton CED according to property type The following chart, entitled Denton ISD/CED Delinquent Tax Roll by Property Type, graphically demonstrates the distribution of the tax roll TAX ROLL ANALYSIS BY PROPERTY TYPE Number of Property Type Accounts Real Property 969 Personal Property 1,196 Mobile Homes 225L Total 4,921 Total Percent of Base Tax Base Tax Due $1,141,231 48% $759,521 32 % $466.212 2M $2,366,964 100% The following tables were prepared using the September 1996 tax roll information and analyze the Denton Independent School District tax roll by property type, size, distribution and degree of delinquency This type of information is useful in developing our collections and litigation strategy for our clients For example • The report entitled Denton ISD Size of Delinquent Account indicates that there are 275, or 28%, of the total real property accounts which owe between $0 and $200 in delinquent taxes, yet only represent 2% of the total real property delinquency In contrast, 272 accounts owe more than $1,000 in delinquent taxes Although the number of small and large accounts are approximately the same, the accounts greater than $1,000 represent $1,410,224, or 78% of the delinquent real property tax roll These accounts, averaging $5,185 in size, were being aggressively pursued in our collection and litigation efforts • The same Size of Delinquent Account report details that 2,101, or 76%, of the 2,756 mobile home accounts owe less than $200 Only 10 accounts owe more than $1,000 and represent 2 3 % of the mobile home delinquency • With respect to all delinquent accounts, 439, or 8 9%, of the total 4,921 accounts owe $2,372,149, or 57 2 %, of the total delinquency, as illustrated by the Size of Delinquent Accounts report These accounts average $5,404 each By comparison, the size of the average account for the entire, total delinquent tax roll is $843 • The report entitled Degree of Delinquency indicates that there are 910 personal property accounts (out of a total 1,196) totaling $594,246 in base tax that do not owe 1995 taxes This usually indicates that the personal property has physically left the Denton Independent Page 15 Denton ISD/CED Delinquent Tax Roll By Property Type Total Base Due as of September 1996 $293669964 Real Property 48% Ih4 4 •4 AAA Business Prop $759, 1,196 acco_____ Mobile Homes $4669212 2,756 accounts WHO Total tax due includes 4,921 delinquent accounts for 1995 and prior base tax due to the Denton ISD and CED. x+ F � N a 9 F W qy m L6 Z O� w0 IL �U a r- r- co r 0) 61� 69 r- U) O v Lf) M r H 69 M 1- 00 r � 00 O N 69 69 `f' M o 00 o rn cNi OD Cl) is ei 04 I-- CV) N � M (O v O O Cl) 60 �i LO r r r N H w w N Of } a to c D W V1 U W 0 �- m H CY W Z N J W 0 C� C W U 0 O 0 0 ea w ea O O O fn v> v> O O O e9 fa f» 0 N N (O A C> N CD is is► O A M 0) (O I O A 00 a w N O V0 6e H M O M Cl) N Cl) a O (n w a d O w Z = (L O W m w a 2 0 0 w m W A co Q H Z 7 O (D c a Z W W OF m W Z Iw- CL LU w C (y LL O rn w uj F Z r�0)tn co Cl) mrl- 1n mM 0o ^ 00 V) 2 M (o to O N N Gt to 0 01 N M N 0o �Mp 00o r� � O r m , OD N NtoM N 0000 00 1 00 OmoT N(ow � NOD 00to 1 to N to \° \ -.-0 L o 0 oa 0 O o 0 0 00 fO 0 O 0 0 Mto� 0 O 0 0 0 uY 1OO 0 O .- 09, O Ntn, O OtoM O T00� O N 0)00 o Ir to 1- o �CDN O vr�r o �1l O 1 N(o O 1 LO V O 1 Ntn O 1 Cl) 1` to to 1` O O r- O r- Cl) 0) (D V 00 V ( C( p4 00 M ( 0) 0) I N 1- r co N M N to 0) Go V ton C N N IL O tlJ 1 � ONO T h 0000 � m Lu '- N M a 01 0), 0) w �- o0 oo 00 Z O O Lu 0 d M O N O Cl) NV = N n V tOn M qw 00 a O d0' M 0> Cl) = 00 N V V 01 tt[ (0, M J V V N '- J Z m a O 0J U) Q w IL O Cl)O (ppLO O 1n N O M 1, N 1- M t n O l O N N V N (o V 1` O� V m N N M � V w 800 04 O M OO J N O h o � r w 000 Ncc O Q J O N O O w 000 O N O Q O N06 O O DISD/CED_DOD DENTON ISDICED DEGREE OF DELINQUENCY SEPTEMBER1996 NUMBER OF BASE AVERAGE SIZE ACCOUNTS TAX PERCENTAGE OF ACCOUNT REAL PROPERTY FIRST TIME 342 199,925 44 17 52% 58458 REPEAT 114 118,083 37 10 35% 1,03582 CHRONIC 323 568,012 01 49 77% 1,75855 NOT OWING 1995 163 174,466 41 15 29% 1,07035 OTHER 27 80,742 88 7 08% 2,99048 TOTAL 969 1,141,230 11 100 00% 1,17774 PERSONAL PROPERTY FIRST TIME 189 68,686 16 9 04% 36342 REPEAT 46 24,599 72 3 24% 53478 CHRONIC 47 69,35115 913% 1,47556 NOT OWING 1995 910 594,245 46 78 24% 65302 OTHER 4 2,63900 0 35% 000 TOTAL 1,196 759,521 49 100 00% 63505 MOBILE HOMES FIRST TIME 269 40,339 90 8 65% 14996 REPEAT 73 18,041 69 3 87% 24715 CHRONIC 49 33,380 50 7 16% 681 23 NOT OWING 1995 2,355 371 607 48 79 71 % 15780 OTHER 10 2,84249 0 61 % 28425 TOTAL 2,756 466,212 06 100 00% 16916 ALLACCOUNTS FIRST TIME 800 $308,951 50 13 05% 38619 REPEAT 233 $160,724 78 6 79% 68981 CHRONIC 419 $670.743 66 28 34% 1,60082 NOT OWING 1995 3,428 $1,140,319 35 48 18% 33265 OTHER 41 $86,224 37 3 64% 2 103 03 TOTAL 4,921 $2,366,963 66 100 00% 48099 School District (if it is no longer on the current year tax roll) and is uncollectible Furthermore, 2,355 of the 2,756 mobile home accounts, representing $371,607, do not owe 1995 taxes, and therefore also can be considered uncollectible Together, 3,265 accounts (66 3 % of the total accounts) which represent 41 % of the total delinquency do not appear to be collectible The following pie chart, entitled Denton ISD/CED Analysts of Dehnquent Tax Roll, graphically demonstrates the following makeup of the tax roll Account Status Base Tax Due Percentage Lawsuits $552,075 23% Bankruptcy $374,560 16 % Mobile Home Past Statute of Limit $271,218 11 % Prior Year Accts -Rec'd Sept Ltr $226,683 10% 1995 Taxes-Rec'd Sept Letter' $225,184 9% Uncollectible' $178, 894 8 % Judgment $134,932 6 % Bad Address $136,994 6 % BPP Past Statute of Limitations $123,237 5 % Exempt/Over 65 $83,676 4% Pay Arrangement $59,511 21 Total $2,366,964 100% Includes 1995 tax amounts turned over to our firm m July 1996 which are not included in any other status Includes accounts which are uncollectible, less than $5, or residuals from defunct corporations The collection of a significant portion of the delinquent tax roll is currently either delayed, barred by operation of law or involved in litigation By grouping the accounts in this manner, these categories break down as follows Collections Delayed Bankruptcy 16 % Payment Arrangement 2 % Bad Address ba Uncollectible/Barred by Law Mobile Home Past Statute of Limitations 11 % Personal Property Past Statute of Limitations 5 % Exempt/Over 65 4 % Uncollectible IS 24 % 28 % Page 16 Denton ISD/CED Analysis of Delinquent Tax Roll Total Base Tax Due as of September 1996 Pay Arrangement $599511 2% $2259184 9% 1995 Taxes Rec'd Sept $226,683 10% Prior Yr Accts Rec'd Sept Letter $136,994 Bad Address $293669964 $3749560 16% Bankruptcy , $83,676 Exempt/Over 65 23% $5529075 Lawsuit Judgment 6% $1349932 MH Past Statute of Limitations 11% $2719218 8% 5% $123,237 $178,894 BPP Past Statute Uncollectible of Limitations Litigation Lawsuits 23% Judgments 61 29 % Total 81 % A total of 81 % of the delinquent tax roll was either in litigation, bankruptcy, uncollectible, or otherwise barred or delayed from our efforts Page 17 BGSM prides itself on its long-term client relationships and its unique knowledge of the North Texas area Our clients have found a successful, long lasting relationship with BGSM provides the highest quality and best performing tax collection program available By focusing our service area on North Texas, we have developed extensive relationships with the court systems, federal agencies and government officials of North Texas which benefit all of our clients Included for your review are letters of recommendation from some of our clients We believe their affirmation of our effectiveness, professionalism and abilities is the best evaluation of our capabilities BGSM is proud of the services we deliver and to have earned the high satisfaction of our clients We encourage you to contact these individuals, or any of our other clients, to discuss our law firm and approach to collections David Childs, Tax Assessor -Collector Jayne Morrell, Tax Assessor -Collector Robert Tollison, Tax Assessor -Collector Gary Faunce, Former Assistant Superintendent for Business Radean Herron, Tax Assessor -Collector Ronnie McClendon, Superintendent Anita Hutson, Tax Assessor -Collector Tom Vandergriff, County Judge Joyce Barrow, Tax Assessor -Collector John Ramsey, Tax Assessor -Collector Donna White, Tax Assessor -Collector John D. Gilliam, City Attorney Dallas County City of Dallas\Dallas ISD City of Sherman\Sherman ISD Lancaster ISD Prosper ISD\City of Prosper Community ISD Rio Vista ISD Tarrant County Hunt County Grayson County City of Seagoville City of Sherman As requested in the RFP, we have provided a list of all our current and former clients in Appendix A Page 18 y0�„tY OJ Y DALLAS COUNTY alp p, Sk DAVID CHILD$ TAX ASSESSOR -COLLECTOR January 6, 1997 To Whom It May Concern This is to express the experience of the Dallas County Tax Office with the law firm of Blair, Goggan, Sampson and Meeks BGSM has served Dallas County since 1984, and the County has been pleased with their performance Before the hiring of BGSM, the Dallas County District Attorney collected an average of $6 million per year in delinquent taxes Since 1984, BGSM has averaged over $12 million per year in collections A number of cities and school districts have contracted with Dallas County for current collections and Blair, Goggan, Sampson & Meeks for delinquent collections Each of these Jurisdictions has bee extremely pleased with the services and collection performance provided by the law firm Grand Prairie ISD City of Seagoville City of Grand Prairie City of Cockrell Hill Lancaster ISD City of Wilmer City of Lancaster As for their performance relative to competing firms, Dallas County conducted a delinquent tax bid in 1990, a process in which BGSM and other firms competed The firms were scrutinized in several categories, including 1) collection rates on behalf of their top 10 clients 2) specific collection rates in areas such as bankruptcies, federal -seized property, seizures and sales, etc 3) minority practices 4) quality of computer system reporting 6) testimony of client entities, and 7) comparative testimony of entities that have replaced one delinquent tax firm with another Following a review of data collected, a bid committee composed of nine elected and appointed county officials, recommended BGSM over the other firm by a unanimous vote On further review of the bids, the County Commissioners concurred and voted 5-0 for BGSM As a result of BGSM's ten-year performance and knowledge gained during the most recent renewal process, Dallas County is convinced that BGSM currently offers the finest delinquent tax collection services available If you desire statistics or any other detailed data, feel free to call me at 214-653-6056 Respectfully, David Childs Dallas County Tax Assessor -Collector RECORDS BUILDING • DALLAS TEXAS 75202 PHONE (214) 653 7711 CITY OF DALLAS To Whom It May Concern - The law firm of Blair, Goggan, Sampson and Meeks has demonstrated experience in the collection of delinquent ad valorem taxes The firm has had the collection contract with the City of Dallas and the Dallas Independent School District since 1983 Millions of dollars in delinquent taxes have been collected through their efforts During the course of our association with the firm, the City has downsized the current collection operation and reduced associated operating expenses. The firm provides an extension of the City's staff concentrating efforts on the collection of delinquent taxes. The handling of customer service calls, correspondence and litigation is done with the same sensitivity and courtesy as is expected from internal staff In addition to the sub3ective "treatment of taxpayers", the firm provides measurable and significant results in collections We have maintained consistently high collection rates through some significantly bad economic times. The firm has served us well, and I can recommend their performance to other entities in need of collection services. Sincerely, tnMorrell Assessor/Collector Department of Revenue and Taxation \bgsm ref DHVARTNXNT DM RCVINUI AND TAXATION CITY HALL DALLAS TEXAS 75201 GRAYSON APPRAISAL DISTRICT CHIEF ADMINISTRATOR Robert H Tollison ASSISTANT CHIEF ADMINISTRATOR James E Bock January 8, 1997 To Whom It May Concern 205 N Travis, Sherman Texas 75090 Telephone 903-893 9673 FAX 903-892-3835 MEMBERS OF THE BOARD C E (Jack) Kretainger Harry R Reynolds CPA Sandra Anderson Margaret Grynwalo Mike McKinley As Tax Collector for the City of Sherman and Sherman Independent School District, I work closely with the firm of Blair, Goggan, Sampson & Meeks I can heartily recommend them as a firm demonstrating professionalism and aggressiveness in collecting delinquent taxes The firm conducts periodic mailings throughout the year to all delinquent taxpayers at their expense In fact, the firm bears all the costs associated with their collection program This serves to reduce the staffing I would need to conduct the same services Blair, Goggan, Sampson & Meeks has consistently demonstrated a very high level of collections They work the difficult cases daily and never Just go for the "gravy" or easy money During their representation, both the City's and School's delinquencies have declined This indicates the firm is doing a superior Job of collecting the delinquent taxes, but they are also making good taxpayers out of bad The firm maintains a local office, staffed with local citizens This enables them to have daily contact locally, as a convenience to our citizens To my knowledge, the firm has always been the leader in filing suns and obtaining and satisfying Judgments Also, the bankruptcy activities performed by the firm are top notch They have obtained momes from bankruptcy court which I would have not thought possible Blair, Goggan, Sampson & Meeks is a very aggressive firm Yet, they have always worked well with hardship cases I believe the McKinney Independent School District would be well served In selecting them as the School's delinquent tax collection firm Should you have further questions, please don't hesitate to contact me Sincerely, Robert Tollison Tax Assessor/Collector LANCASTER INDEPENDENT SCHOOL DISTRICT Robert L Payne Bill Ward Gary L Faunce C P A Asst Supt/Instruction Superintendent Asst Supt/Business May 9, 1996 To Whom it may concern I would like to make you aware that our District charged from Perdue, Brandon, Fielder, Collins & Mott, L L P to Blair, GoWan, Sampson & Meeks (BGSM) for our delinquent tax collection services over 2 years ago I n retrospect, with the benefit of hindsight, we would make the same decision again today We have experienced a significant increase in the effectiveness of delinquent tax collection efforts both in terms of dollars collected and as a percentage of delinquent taxes outstanding This effectiveness has also been apparent In the decline In the amount of current year tax turned over for collection each year since BGSM took over collections We have also appreciated the level of communication we have experienced with the attorneys assigned to our District They have continuously kept us informed as to their collection activities on our behalf as well as the results of those activities If I can be of any other assistance or provide any other Information please feel free to contact me Sincerely, Gary L Faunce 1105 Westridge • P O Box 400 - Lancaster, Texas 75146 (214) 227.4141 • Fax (214) 227 1102 TAX ASSESSOR -COLLECTOR RADEAN HERRON, RTA PROSPER IS D /CITY OF PROSPER May 9, 1996 To Whom It May Concern The City of Prosper and Prosper Independent School District retained the law firm of Blair Coggan Sampson & Meeks in June 1990 As Tax Collector for the City of Prosper and Prosper Independent School District, I have worked with BGSM closely over the last 5 years and I would like to make this recommendation on their behalf They have worked consistently and persistently in their efforts to collect taxes for Prosper We have maintained a good working relationship with Gary Bennett, Attorney and Jeanette Butler, Office Manager and are pleased with their efforts in minimizing the delinquent tax roll We feel they are doing an outstanding Job Blau, Goggan, Sampson & Meeks are aggressive in their collections, but have never failed to work well with hardship cases and special situations They have collected some large accounts for our Jurisdiction and also work very diligently to collect the lesser amounts I am pleased to recommend them to you for possible consideration in the collection of your taxes Sincerelv Radean Herron Tax Collector RH/ '0� E C.,DW,� S-;:= P C BOY 65 TE-ED"NV:r C14' 34'-13 . PRCSPE= __ Qommundy gno(ependrenl c3c iooi &s1 cl P 0 Box 400 • Nevada, Texas 75173 (214) 853.2474 January 6, 1997 McKinney ISD Board of Trustees #1 Duvall Street McKinney, Texas 75069 Dear Sirs It is with pleasure that I recommend the law firm of Blair, Goggan, Sampson, & Meeks Community Independent School District retained BGSM in July 1991, to collect delinquent taxes During the period from July 1991 through June 1994, BGSM collected over $440,000 in delinquent taxes, penalties, and interest for the school district The representatives from the firm have always exhibited professionalism, an understanding, and a willingness to work with our district's tax collection personnel and the taxpayers of the district It is without hesitation that I strongly recommend the law firm of Blair, Goggan, Sampson, & Meeks Sincerely, Ronnie McClendon Superintendent Pursuing Excellence Rio Vista Independent School District Dr. Sharron Miles, Superintendent Telephone 817/373.2241 Box 369 Rio Vista, Texas 76093 Beard of Trustees Byron Cobb President Butch Hackler Vice President Darlene Dumas Secretary Member Jackie Morgan To Whom It May Concern Carl Rogers Mike Elmore I am pleased to write you in regard to your selection Louu Homesley of a law firm to handle your delinquent tax collections The law firm of Blair, Goggan, Sampson & Meeks delinquent tax collection program has proved to be highly sucessful for the Rio Vista Independent School District They leave you in complete control of your accounts while they pursue an agressive collection program The periodic statements are followed by law suits, ,judgements and fore- closures Due to the diligent effort of Blair, Goggan, Sampson & Meeks the school delinquent taxes have decreased remark- ably since beginning with their delinquent tax collection program in 1992. The staff and attorneys are always courteous and willing to assist our tax office beyong the limits of their contract I highly recommend the law firm of Blair, Goggan, Sampson & Meeks, Attorney -At -Law to represent you in the collection of your delinquent taxes. Sincerely, Anita Hutson Tax Assessor -Collector Rio Vista ISD TOM VANDERGRIF'F County Judge (817) U4.1441 FAX (817) 8842188 COUNTY JUDGE of TARRANT COUNTY November 14, 1994 County Administration Building 100 East Weatherford Street Fort Worth, Texas 76196-0101 To Whom It May Concern: Blair, Goggan, Sampson & Meeks has represented Tarrant County for a number of years in the field of delinquent tax collections. In fact, that contractual relationship has only recently been extended for a new term of several more years Our Tax Assessor and Collectors office is high in its praise for the services of Blair, Goggan, Sampson & Meeks. On behalf of Tarrant County, I can assure any interested party that the firm is conscientious and diligent in the pursuit of its responsibilities and has been professional and productive in its relationship with us. We have great respect for the firm Sincerely, Tom Vandergrif HUNT COUNTY POST OFFICE BOX 1042 • GREENVILLE, TEXAS 75403 1042 TAX ASSESSOR -COLLECTOR JOVCZJ BARROW (903) 408 4180 FAX (903) 406 4298 EMAIL-hct•aOkoyot•com January 18, 1996 TO WHOM IT MAY CONCERN May I take this opportunity to recommend to you the law firm of Blair, Goggan, Sampson & Meeks & Associates. For approximately 10 years, this law firm has served as delinquent tax attorneys for the County of Hunt and for other jurisdictions in the county. At the present time it represents 10 jurisdictions in Hunt County. Our working relationship with this firm continues to be excellent due to • Open lines of constructive communication, • Its attorneys' high degree of professionalism, • Willingness on its part to correct and assist with solving problems in a timely manner, • Its filing of tax suits promptly, • Its aggressive seizure of mobile homes and business personal properties, and • Its installation of a modem in its office to access our tax office computer system. In addition to these attributes cited above, the firm maintains an excellent staff at the local level. Should your require further information, please contact me Sincerely, C$' J BARROW t County Tax Assessor -Collector JJB/mp COURTHOUSE 100 W HOUSTON • SUITE 11 PO BOX 2107 SHERMAN, TEXAS 73091-2107 July 1, 1996 OFFICE OF JOHN W. RAMSEY ASSESSOR AND COLLECTOR OF TAXES GRAYSON COUNTY Re Blair, Goggan, Sampson and Meeks Grayson County's Delinquent Tax Attorneys TO WHOM IT MAY CONCERN (903) 892-TAXS (8297) (903) 893-VOTE (8683) (903) 813-4225 (AUTO) FAX (903) 893.4973 I am writing this letter on the behalf of the law firm of Blair, Goggan, Sampson and Meeks and their attorney handling the delinquent tax accounts for Grayson County, Mr Gary Bennett This firm has represented Grayson County in the collection of delinquent taxes for the past year The firm maintains a local office and their office staff is always available and willing to assist in every way possible I have found them to be very diligent and competent while maintaining professionalism The percentage of delinquent collections has Improved over the year The collection goal set by Grayson County has been met which attributes to their dedication and aggressiveness in their tax collection efforts I have no reservations in recommending Mr Bennett and the law firm of Blair, Goggan, Sampson and Meeks to any entity desiring assistance in delinquent tax collections or related matters Very truly yours, 1 Jo �a ey sessor and Co ector of Taxes Grayson County JR/kb CITY of SEAGOVILLE o �a 702 N HIGHWAY 175 — SEAGOVILLE, TEXAS 75159 � P O R 1 (214) 287 2050 Fax (214) 287 3891/287 1269 May 09, 1996 To Whom It May Concern The City of Seagoville contracted Blair, Goggan, Sampson, & Meeks to collect delinquent taxes in August 1987 Their firm has served the City of Seagoville well since that time Blair, Goggan, Sampson, & Meeks is specialized in delinquent tax collections, and their staff is highly qualified and utilizes resources that a small City such as Seagoville does not have readily available Their firm is very effective in coordinating with the Bankruptcy Court in making sure we receive all tax payments due from Bank- ruptcies filed In addition to the effective collection of delinquent tax pay- ments, the firm provides a variety of useful management reports, such as the summarizing of the delinquent accounts by categories of properties, dollar amounts, and age of delinquency The staff of the City of Seagoville can attest to the quality of service that this firm provides Sincerely, AIC/L/At Donna K White Tax Assessor/Collector SHCRnIM LEGAL DEPARTMENT Phone No (903)892.7305 Fax No (903) 892.7394 May 9, 1996 Mr Gary Bennett, Esq Blair, Goggan, Sampson, and Meeks 125 North Travis, Suite B-1 Sherman, Texas 75090 Re Letter of Recommendation Dear Mr Bennett It is with pleasure that I submit this letter of recommendation to Blair, Goggan, Sampson, and Meeks As the City staff member responsible for coordinating our delinquent tax collection program, I am intimately familiar with Blair, Goggan, Sampson, and Meeks' performance record on behalf of the City of Sherman Since 1990, you and your firm have done an outstanding Job in collecting the City's delinquent taxes Over the past six years we have, through your efforts, recovered in excess of $1 6 million The City Council is very pleased with your work as evidenced by their renewal in July, 1995, of your contract for an additional three years Sincerely, J hn D Gilliam ity Attorney JDG pc xc Jim Andrews, City Manager P 0 BOX 1108 • SHERMAN, TEXAS 76091 1106 (903) 892 7206 IV. Project Team and Offices (RFP Selection Criterion 1 f-j, 3, 4) Realizing the Importance of accessibility to our clients and taxpayers, BGSM regularly establishes offices in our clients' jurisdictions These offices provide personal service to our clients and taxpayers BGSM's Denton office has served the Denton community for eleven years, thus we have clearly met the City's criteria for establishing an office in Denton (RFP Selection Criterion 4). Our North Texas Regional Office, located in Dallas, provides legal, administrative and collection support to all of our offices 1.1 13WIPMUMITillIIYm Our law firm estabhshed an office in the City of Denton in 1986 The office is located at 326- G East McKinney Street (directly across from the Civic Center), and is accessible to taxpayers, City Hall, County Tax Offices and the Denton County Courthouse Mr Stephen Meeks, a partner in our law firm, is the attorney responsible for our Denton collection program He is assisted with our litigation efforts by Mr Gary Bennett, attorney, Ms DeMetris A. Sampson, partner, Mr. Edward Lopez, attorney, and by Ms Beth Weller, bankruptcy attorney Ms. Nancy Primeaux serves as the Regional Manager for our law firm The Denton office is managed by Ms. Deborah Patton, who has more than 15 years experience in office management and ten years of experience in the collection of ad valorem taxes A resident of Denton for 14 years, she is active in her community and is a member of the Denton chapter of Business and Professional Women She has worked in the areas of delinquent account collections, telephone collections, skip -tracing and litigation Ms Patton manages the day-to-day operations of the Denton office, coordinates BGSM's litigation efforts and assists taxpayers Ms Patton is assisted by Ms. Dana Markham and Mr Ralph Roberts Ms Markham is a resident of Denton and attends the University of North Texas where she is majoring in Early Childhood Education As our legal assistant, she assists taxpayers with questions regarding their delinquent accounts and payment arrangements In addition, her responsibilities include preparing and filing legal documents and assisting in researching accounts Mr Roberts performs abstracts on accounts targeted for BGSM's lawsuits filed on behalf of our Denton area clients and serves as a client liaison He is a former Tax Assessor -Collector for Swisher County and has 25 years experience in tax collections Our local office has a positive financial impact on the Denton community We support many local businesses, vendors and suppliers and have spent over $1,100,000 in Denton since we opened our office. Our Denton collection program is designed to maximize local participation and involvement We estimate that 66% of every dollar we earn in attorney fees is spent in Page 19 Denton and positively impacts the community. Typical expenses include salaries, rent, office supplies and services, research books and subscriptions, equipment purchases, leasing and maintenance contracts, telephones, utilities and contributions to charitable organizations It is our law firm's practice to associate with attorneys who bring a unique local perspective to the collection of delinquent taxes and provide a broad range of liaison and oversight functions BGSM has joined with the Law Office of Mike Gregory to provide the highest quality collection services for the City Mr Gregory assists BGSM in the monitoring and implementation of our program by serving as liaison with the local bar, press, judicial and other courthouse officials Mike Gregory will be assisted in these responsibilities by his associate attorney, Charla Bradshaw Responsibilities for the City of Denton contract will be structured so that Mr. Gregory and Mrs Bradshaw will share lead attorney responsibilities with BGSM attorneys in litigating tax cases on behalf of the City. In addition, Mr. Gregory will act as an ombudsman for taxpayers when necessary. Our North Texas (Dallas) Regional Office, established in 1983, has a fine reputation of maximizing delinquent tax collections for taxing units throughout North Texas Its staff of 50 tax professionals consists of attorneys, paralegals, litigation assistants, collectors, researchers, data specialists and administrative personnel, who provide in-depth support to our Denton office and thereby extends their managerial, collection, research and litigation capabilities We maintain a toll -free telephone service (800441-0%0) to the Dallas office for the use of Denton residents (RFP Selection Criterion 4). The collection efforts of our Denton office are further enhanced by the support of our statewide management, data processing and lawsuit production staffs Our data processing staff includes over 40 programmers and technicians who perform mailing activities, produce lawsuits, conduct tax roll analysis, provide lawsuit tracking information and create reports and listings utilized by the Denton office in the collection of taxes In total, over 70 of the law firm's personnel will be associated with the City of Denton collection program. Blair, Goggan, Sampson & Meeks (BGSM) and Mike Gregory are working together to provide the best possible delinquent tax collection program in Denton BGSM Partner Stephen T Page 20 Meeks, Mike Gregory and Charla Bradshaw will serve as the lead attorneys to represent the City. The management team who will be responsible for the design and implementation of the Denton workplan is provided below Mike Gregory Charla Bradshaw Steve Meeks DeMetris Sampson Nancy Primeaux Debbie Patton Gary Bennett Edward Lopez Beth Weller Peggy McCormick Gary Coleman Gloria Holmes Sharon Fordinal Local Counsel - Responsible for Denton ISD Local Counsel - Responsible for Denton ISD Partner - Responsible for Denton ISD Partner Regional Manager Denton Office Manager Attorney Attorney Bankruptcy Attorney Data Manager Collection Manager Litigation Manager Bankruptcy Coordinator We have included for your review the resumes of all key managerial staff which will be assigned to our City of Denton collection efforts Throughout the year, BGSM utilizes many part-time employees to assist with collections, research and special projects, however, all positions listed in this section are full-time in nature In total, over 70 of our law firm's personnel will be associated with our City of Denton collection program in one capacity or another BGSM's collection program is the combined effort of our Denton employees, North Texas (Dallas) Regional Office employees, our Metroplex attorneys, bankruptcy and management team, computer professionals, administrators and the BGSM partners Our data processing support is provided by our subsidiary company, United Governmental Services of America, Inc. (UGSA). Our law firm has pioneered the application of high technology in the field of delinquent tax collections and has invested millions of dollars to develop the latest and most successful computer and communication technology for the specialized purpose of collecting taxes Key members of our staff of 40 computer professionals are also listed, together with their qualifications and biographical information Page 21 The resumes of these key individuals are included for your review in the following order Local Counsel The Law Office of Mike Gregory BGSM Partners and Attorneys Denton Office Personnel North Texas Management Team Data Processing Specialists Mike Gregory, Local Counsel, moved to Denton in 1946 and graduated from Denton High School in 1963 Mr Gregory then earned his B B A in Finance from the Business Honors Program in 1967 and graduated from the University of Texas Law School with a J D in 1970 Mr Gregory was admitted to the Texas Bar in 1970 and then served as a lawyer and military Judge in the United States Marine Corps He is admitted to practice before the Texas Supreme Court, United States Supreme Court and the United States District Court, Northern District of Texas He has maintained a law practice in Denton since 1974 and became Board Certified in Family Law by the Texas Board of Legal Specialization in 1976 Mr Gregory is a member of the American Bar Association and a member and Past -President of the Denton County Bar Association He is a Past -President of the Texas Academy of Family Law Specialists and a former Director of the North Texas Family Law Association Mr Gregory is a Fellow in the American Academy of Matrimonial Lawyers and an AV rated attorney by Martindale -Hubbell National Directory, the highest rating given by Martindale -Hubbell He has been a member of the Form Book Revision Committee, Texas Family Law Practice Manual, from 1991 to present Mr Gregory has taught Business Law courses at TWU and UNT and has taught a course at TWU entitled "Women and the Law " Charla Bradshaw, Attorney, graduated from Denton High School in 1980 and from Texas Women's University in 1987 with a B S in Human Relations Summa Cum Laude Mrs Bradshaw received her J D degree in 1993 when she graduated from Southern Methodist University School of Law where she was on the Dean's Advisory Council, Trial Advocacy Program and directed a research on divorce mediation She received her Texas law license in 1993 and is licensed to practice before the Texas Supreme Court and all other Texas courts Mrs Bradshaw has written articles for continuing legal education seminars and is presently serving on the Advanced Family Law Planning Committee for the State Bar of Texas She has been an associate attorney in the Law Office of Mike Gregory for two years and thoroughly enjoys trial work Page 22 Stephen T. Meeks, Partner and Responsible Attorney for Denton County Operations, was admitted to the Bar in 1975 after receiving his B B A and J D from Baylor University where he was President of the Student Bar and a member of Phi Alpha Delta legal fraternity He has been engaged in the private practice of law since 1975 and has 18 years litigation experience and seven years delinquent tax collection experience Mr Meeks' community involvement includes serving on the YMCA Board of Directors and as a member and former Secretary of the Hurst -Euless - Bedford Independent School District Board of Directors He teaches "The Texas Property Tax System," an education course designed by our law firm and certified by the Texas Education Agency for school board member accreditation Mr Meeks is admitted to practice before the U S District Court, Northern District of Texas His professional memberships include the State Bar of Texas and Tarrant County Bar Association DeMetris Aquilla Sampson, Partner and Managing Attorney for Dallas County Regional Office, was admitted to the Bar in 1980 after receiving her B B A and her J D from the University of Texas at Austin She also received her L L M (Taxation) from Southern Methodist University School of Law in 1986 She is responsible for general ad valorem tax litigation in the Dallas area Ms Sampson's experience includes serving as an Assistant City Attorney for the City of San Antonio, serving as Chief Counsel to the Texas House of Representatives Judicial Affairs Committee, serving as an Assistant District Attorney in Dallas County, and being engaged in the private practice of law She is admitted to practice before all courts of the State of Texas, the U S Fifth Circuit Court of Appeals, the U S District Court, Northern District, and the U S Tax Court Her professional involvement includes and has included active participation in the Dallas Bar Association, Dallas Bar Foundation Fellow, Texas Bar Foundation Fellow, Inn of Court, and the Past -President of the J L Turner Legal Association and the Dallas Association of Black Women Attorneys Ms Sampson's community involvement is extensive and includes serving on the East Texas State University Board of Regents, the City of Dallas' Domestic Violence Task Force, the St Luke "Community" United Methodist Church Board of Trustees and, until recently, the Dallas Area Rapid Transit Board She has received many awards for her community service Most recently Ms Sampson was honored with the 1996 Dr Martin Luther King Jr Justice Award by the Dallas Bar Association, the Asian American Bar Association, the Dallas Women Lawyer's Association, the J L Turner Legal Association and the Mexican - American Bar Association She has been named as a 1990 Outstanding Young Texas Ex of the University of Texas Ms Sampson resides in Dallas and has nine years experience in delinquent tax collection Stephen S. Blair, Partner, was admitted to the Bar in 1967 after receiving his B A and J D from the University of Texas at Austin Mr Blair serves as the Affirmative Action Officer of our law firm He served for several years as General Counsel and Affirmative Action Officer to the Texas Education Foundation, Inc , where he gained substantial experience in administering multimillion dollar government contracts Mr Blair is a former Assistant District Attorney for Page 23 Jefferson County and is admitted to practice before the U S District Court, Northern District of Texas He has 17 years of delinquent tax collection experience and has lectured on ad valorem taxation for the State Bar Thomas S, Goggan, III, Partner, was admitted to the Bar in 1967 after receiving his B A and J D from the University of Texas at Austin Mr Goggan has more than 17 years of experience in delinquent tax collection and is active in the establishment of our law firm's litigation policies and represents our clients at the appellate level in complex tax cases He is Board Certified in Civil Trial Law by the Texas Board of Legal Specialization, and has litigated complex tax cases, both Jury and non jury, in the District Courts, the Court of Appeals, the Supreme Court of Texas, and the Supreme Court of the United States Mr Goggan is a former member of the Civil Appellate Law Advisory Commission for the Texas Board of Legal Specialization and has also served on the State Bar's Committees for Continuing Legal Education, Administration for Justice and Administrative Law He is an author and lecturer for the State Bar of Texas Professional Development Programs, and lectured on ad valorem taxes for the State Bar Advanced Real Estate Law Course Gary Bennett, Attorney, was admitted to the Texas Bar in 1980 after receiving his J D from the University of Texas School of Law at Austin He has served as President of the North Central Texas Council of Governments and as a member of the Sixth Congressional District Advisory Committee during the 99th and 100th Congresses Prior to Joining the firm, Mr Bennett served as County Judge for Navarro County He is currently a member of the State Bar Committee on Ad Valorem Taxation, having served on the Committee since 1989 Mr Bennett has over six years experience in tax litigation and the general practice of law Edward Lopez, Attorney, earned his B B A in Finance at Southwest Texas State University and his J D from Southern Methodist University School of Law Mr Lopez is well versed in tax collection law, having clerked with BGSM for several years while he was in law school Prior to Joining our firm, Mr Lopez was associated with several local law firms and has worked in private practice He is licensed to practice in all state courts and in the federal courts for the Northern and Southern Districts of Texas Mr Lopez has three years delinquent tax collection experience Beth Weller, Bankruptcy Attorney, represents our clients in bankruptcy matters Ms Weller received her B A to Business Administration from the University of North Carolina at Chapel Hill and her J D from Wake Forest University School of Law She previously served as Staff Attorney in the Office of Staff Counsel for the United States Court of Appeals for the Fourth Circuit in Richmond, Virginia Ms Weller has extensive bankruptcy and litigation experience, having served as Law Clerk in both the Eastern District of Virginia and the Northern District of Texas United States Bankruptcy Courts She is admitted to practice in the State of Maryland, the U S District Court for the Middle District of North Carolina, State of Texas and the U S District Court for the Northern District of Texas Ms Weller has three years of tax collection experience Page 24 Debbie Patton, Denton County Manager, has more than eighteen years experience in office management and ten years experience in the collection of ad valorem taxes She has worked in the areas of delinquent account collections, telephone collections, skip -tracing and litigation Ms Patton is the mother of two, a member of the PTA and the Professional Women of Denton and is active in the Denton County FFA program, Denton County Youth Fair and Pee -Wee League Sports Association Dana Markham, Litigation Assistant, joined BGSM in 1996 Ms Markham assists with the litigation efforts of our Denton office and she works with taxpayers in person and on the telephone to resolve their delinquency Prior to joining BGSM, Ms Markham gamed extensive customer service experience working as a Senior Sales Support Specialist for Software Spectrum and as a telemarketer for Five Senses, Inc In addition to working for BGSM, Ms Markham is attending the University of North Texas where she is pursuing a degree in Early Childhood Education Ralph Roberts, Abstractor, has been associated with BGSM since 1993 Mr Roberts is a former Tax Assessor -Collector for Swisher County and has over 25 years experience of tax collection experience Prior to joining BGSM, Mr Roberts owned Equitable Appraisal Services and also worked in public relations and collections for a tax law firm He conducts abstracts on all real property lawsuits filed by BGSM on behalf of our Denton area clients Nancy Primeaux, Regional Manager, is responsible for the management and coordination of the firm's tax collection program and operations for the City of Carrollton Ms Primeaux's responsibilities include client relations and management reporting and she works closely with our clients to assist in revenue projections She is the former Tax Assessor -Collector for the City of Dallas and Dallas ISD Ms Primeaux holds a B A in Plan II (a liberal arts honors program) and an M S S W in Planning and Policy Development from the University of Texas at Austin She is active in several statewide tax organizations and has over fourteen years of tax collection experience Peggy McCormick, Data Manager, is responsible for coordinating the transfer of tax roll data and demand mailings and assisting in management reports Ms McCormick is a former Tax Collection Manager for the City of Grand Prairie She holds a B B A from the University of North Texas and has fourteen years of experience in the collection of ad valorem taxes Ms McCormick is a certified instructor for Texas Association of Assessing Officers (TAAO) and is a Certified Tax Administrator (CTA) Gary Coleman, Collections Manager, holds a Bachelors in Business Administration in Finance Page 25 from the University of Texas at Arlington Prior to joining our firm, Mr Coleman was a Vice - President with NationsBank He has 13 years of collection experience and has been with BGSM since 1995 Mr Coleman is a member of the North Texas and Collin County chapters of TAAO Glona Holmes, Litigation Manager, is responsible for overseeing the litigation filed by our firm on behalf of the City Ms Holmes, a Certified Legal Assistant, holds a B A degree in political science with an emphasis in pre -law studies from East Texas State University She is a member of the State Bar of Texas Division of Legal Assistants, the El Centro College Legal Assistants Association and the Dallas Association of Legal Assistants Ms Holmes has 13 years of delinquent tax collection experience Sharon Fordinal, Regional Bankruptcy Coordinator, earned her B S in Accounting Business Management and her Legal Assistant Certification from Lamar University in Beaumont, Texas She also has attended Durham Business College in Beaumont Ms Fordinal has 17 years bankruptcy experience on both debtor's and creditor's sides and over 20 years experience in Business Management She coordinates all bankruptcy matters for the North Texas Regional Offices Her responsibilities include assisting in resolving taxpayer disputes involving application of bankruptcy payments, coding new cases, tracking existing cases, referring cases to litigation and collections when appropriate, training personnel in bankruptcy tracking system, preparing correspondence and assisting in drafting pleadings David J. Dartez, Systems Operations Manager, started with our law firm 15 years ago and was instrumental in coordinating the development of the first computer technology designed for the collection of delinquent taxes on behalf of our law firm He continues to monitor our law firm's development of new software technology and improvements on existing systems Mr Dartez provides consulting services to our clients on their software and computer needs for tax collection and other governmental functions He has served as Director of Information Services for Bexar County, Project Leader for Philco-Ford at NASA's Manned Spacecraft Center and was Senior Systems Analyst for the City of Houston Richard H. Pachecano, Durector of Data Processing, received a B B A in Accounting and Business Data Systems from the University of Texas at San Antonio He joined our law firm in 1983 and is responsible for the direction and management of all phases of the law firm's computer support organization and manages a staff of 43 computer professionals Mr Pachecano also participates in marketing efforts of the firm by working with senior client staff members and elected officials on computer -related issues and conducting or participating in software demonstrations and tax system development workshops Mr Pachecano previously served as Deputy Director of Information Systems for Bexar County and as Applications Manager responsible for the County's Financial, Tax Collections and Automobile Registration Systems Page 26 He is a member of the Texas Association of Assessing Officers Don O'Brien, Delinquent Operations Manager, holds a B S from Miami University of Ohio Mr O'Brien is responsible for managing the Delinquent Operations staff He provides the direction for the maintenance and development of our firm's delinquent tax collection systems and regularly confers with our firm's managers to identify their information needs and possible solutions Mr O'Brien also works with client staff members to facilitate the processing of the client's and our law firm's delinquent tax data He has been employed with our firm since 1986 and has held responsible positions involving all the department's computer systems Mr O'Brien was previously employed as a hardware and software representative for Valcom Computer Center Felix Lopez, Manager of Production and Mailing Control, holds a B B A from St Mary's University and an M B A from the University of Texas at San Antonio Mr Lopez joined our firm in 1987 and is responsible for directing the daily data processing production functions, controlling and verifying accuracy of mailings, and reporting activity and reviewing and analyzing statistical data for all delinquent tax rolls He supervises nine data processing employees and allocates personnel and equipment resources as needed to complete assigned projects in a timely manner His responsibilities include the coordination of all the steps in the mailing process Mr Lopez was previously employed at Omni Interest, Inc as Manager of Data Processing Paula Starnes, Mailing Coordinator, received her B A in Management from Southwest Texas State University She joined our firm in 1988 and is responsible for delinquent and current mailings by coordinating mailings with the respective client, regional office and post office Ms Starnes was previously employed as senior production analyst at Alamo Community College District Martin Rangel, Programmer, received his A A from San Antonio College in Computer Sciences and currently is pursuing his B A in Computer Science Mr Rangel joined our law firm in 1986 and is responsible for researching and analyzing technical information for new delinquent systems and delegating program and/or system modifications of existing systems to other delinquent programmers He also supervises three other programmers on assignments, time schedules, special projects and requests He ensures that system utility programs modification problems are assessed and reported immediately He was previously employed as the lead computer operator at GPM Life Insurance Company for five years Page 27 V. Community Involvement The presence of BGSM in Denton has had a very positive impact on the community during the past decade. BGSM values and encourages good "corporate citizenship" through community and professional service Our law firm has been a member of the Denton Chamber of Commerce since 1987, working in cooperation with the Chamber to obtain volunteers for the school "Speaker Bureau" and other activities We also support local charities including the United Way, Denton Jaycees, Denton Special Olympics and the D A R E program BGSM has supported, through its partners and staff, a variety of worthwhile civic, professional, business and charitable endeavors Our law firm is also committed to the concept of businesses supporting local performing arts programs and have provided support to the Denton Community Theatre We are proud of our involvement in Denton and have supported the following activities since 1986 Denton High School was adopted by BGSM in 1993 We have worked closely with Mr Wallace to determine the high school's needs and to provide assistance When it became apparent that the school was in need of classroom dictionaries, we donated 250 Webster Dictionaries and five English -Spanish dictionaries In 1993 BGSM was the recipient of the Certificate of Merit and we received the Denton ISD Certificate of Appreciation for exemplary efforts in support of the Denton Public Schools in 1995 and 1996 In addition, we developed, in cooperation with the Denton Chamber of Commerce, a list of individuals and organizations who have agreed to speak to the Denton High School students regarding their Job or vocation as part of the "Careers Think About It Now" program The range of speakers we contacted included municipal officials, court officials, elected officials, data processing managers and representatives from the Denton Record - Chronicle - For the past three years, our law firm has presented the District with a check for the Classroom Teacher Mini -Grant Program We are especially proud of our participation in the Teacher Mini -Grant Program, which began in 1992 with a $1,000 contribution and was increased to $2,000 in 1994 Our participation in the "selection process" of those projects funded has been particularly rewarding, because it has allowed us to be a part of the classroom learning experience - Each year since 1992 we have donated a $200 award to the Denton High School Teacher of the Year and contributed to the annual Project Grad Nite Page 28 In January 1994, BGSM also contributed $200 to purchase incentives for students to participate in the Accelerated Reading Program - BGSM gave Denton High School $200 to assist with payment of PSAT tests for several students - In 1996 we contributed over $200 toward Denton High School's enrollment fee in the STAR (Student Action for Recycling) Program Contributed $100 to the Renaissance Program - Our law firm makes an annual contribution to the University of North Texas general scholarship fund - BGSM is a contributor to the Denton ISD Scholarship Program - BGSM has participated in the Texas Women's University Cooperative Education Program each year since 1992 In addition, we have offered to conduct taxpayer education seminars, provide speakers and/or contest judges and to provide legal assistance to the Denton ISD Education Foundation Mike Gregory's Community Involvement Mike Gregory has maintained a very active community involvement over the past 22 years in City, school, civic and church activities as follows Civic Activities • Past -President and member of the Board of Directors of Big Brothers and Sisters of Denton County • Former Big Brother with Big Brothers and Sisters of Denton County • President of Denton County Bar Association, 1983-1984 • Past member of Board of Directors of SPAN • Past Pro Bono Legal Advisor to SPAN • Current Pro Bono Legal Advisor to Friends of the Family • Pro Bono legal work for TWU legal clinic and West Texas Legal Services • Past member of the Board of Directors of Denton County United Way • Past Meals on Wheels driver • Present member of the Denton Chamber of Commerce • Present Denton State School volunteer • Former Boy Scout Troop committee member Page 29 • Past Director for Denton County Seat Saturday Fun Run for two years • Past member of Denton County Seat Saturday Planning Committee for two years • Fund raiser for YMCA, Boy Scouts, United Way, Big Brothers and Sisters, Summer Summits, Campus Theatre and Denton Arts Guild • Past -President of Denton County Texas Exes Association Denton ISD Activities • Past School Board Trustee • Treasurer of 1985 Task Force Committee supporting passage of the 38 8 million school bond package which passed on February 23, 1985 In this capacity, Mike Gregory raised funds and gave numerous presentations to PTAs and civic groups • While on the School Board, gave presentations with other School Board members and staff to Moody's and Standard and Poor's on successful bond rating trips • Supported 1996 Denton ISD bond package by writing a Letter to the Editor • Volunteer speaker for grades 7-12, speaker at Career Days, past volunteer reader at Hodge Elementary • Former Adopt -a -School participant • Graduate of Denton High School • Both of Mike Gregory's children have graduated from Denton High School and both of his parents were Denton ISD teachers Church - First United Methodist Church • Past Chair of Board of Trustees • Member of Administrative Board • Past youth sponsor • Summer Youth Mission Project in Mexico • Past member of Staff -Parish Relations Committee • Director of First United Methodist Church Foundation • Past member Nominating Committee • Past member Finance Committee • Past -President of Sunday School class • Member of Building Committee for Fellowship Building, 1978-1980 • Present participant in New Member Sponsor Ministry Charia adshaw's Community Involvement Charla Bradshaw has been an active Girl Scout Brownie leader for three years She volunteers all day every other Monday in her children' elementary school In October 1996, Mrs Bradshaw was Chair of the PTA Fall Carnival Silent Auction that raised approximately $22,000 She is a volunteer driver for Meals on Wheels and is on the Advisory Board of Christ's Haven for Children Mrs Bradshaw is a frequent guest lecturer at Texas Women's University Page 30 VI. Scope of Services (RFP Selection Criterion 2) LAW Our collection program merges the disciplines of law and collections with highly sophisticated computer capabilities. Most law firms in this field mail demand letters and file lawsuits However, the standards which distinguish Blair, Goggan, Sampson & Meeks from others in the field are personal telephone contacts, taxpayer research and correspondence, comprehensive bankruptcy, federal agency collections and the aggressive prosecution of lawsuits from filing to execution of judgments While our collection program relies heavily upon data processing techniques to manage a large volume of accounts, our efforts are successful largely because of the extent of personal attention we expend in our litigation and collection efforts. All taxpayers are treated with politeness and professional courtesy. Although our collection strategy is based upon the maximum automation that technology will permit, the most advanced state-of-the-art technology cannot furnish the discretion, judgment or compassion necessary to provide the level of service on which BGSM prides itself Therefore, our approach to dealing with taxpayers' responses to a mailing reflects our keen awareness of their concerns By notifying all taxpayers, regardless of amounts due, and providing a well -trained staff, we endeavor to facilitate the payment of taxes Written and verbal information is provided to taxpayers in both Spanish and English. Mike Gregory and Blair, Goggan, Sampson & Meeks believe that a successful collection program must be multifaceted, flexible and tailored to each chent's specific needs. Our comprehensive collection program combines telephone collection, address and problem account research, taxpayer correspondence, litigation, bankruptcy proceedings and federal agency collections One of our most important and effective tools is coordination of our mailings, lawsuits and media attention to create credibility for our collection letters The following section details Blair, Goggan, Sampson & Meeks' ability to legally provide services described under the Texas Property Tax Code and other relevant laws Included in the following pages is a description of our scope of services, workplan and methodologies that we have successfully employed for our clients throughout North Texas A flow chart on the following page, entitled Delinquent Tax Collection Process, gives an overview of our tax collection program. Page 31 Blair, Goggan, Sampson & Meeks Delinquent Tax Collection Process ,i * Mulling INo Response) Blip 131�urt f Lawsuits No Respons Abstract Real Preporty Lawsuits Service s u <, Setting Mailing No Response Next Cycle Problems I IReturn Mail I Research I Problems I I Return Mail Letters Sale Notifies Research I $a1O Seizure The City of Denton can be assured that the collection and litigation strategies and techniques utilized by BGSM on behalf of our clients are both legal in nature and courteous and professional in manner Our staff is knowledgeable and trained to follow collection and litigation strategies as prescribed by the Texas Property Tax Code Furthermore, while property taxes do not fall within the definition of "consumer debt" as defined by the Fair Debt Collections Act, our law firm, nevertheless, adheres to the guidelines set out by the Act with respect to the manner in which we contact delinquent taxpayers BGSM believes that a successful delinquent tax collection program must be multi -faceted, flexible and tailored to each client's specific needs Blair, Goggan, Sampson and Meeks provides the comprehensive collection services listed below to all of our clients • Customized Workplan for Each Client • Taxpayer Notification Program - Written Notification - Telephone Notification (Collection Calls) and Personal Contact • Address Research/Taxpayer Location Program - Identification of Accounts Requiring Research - Reference Sources - Maintenance of Records on File - Business Personal Property Accounts Researched Prior to Suit Filing - Title Verification Conducted Prior to Filing of Real Property Tax Suns • Taxpayer Assistance Program - Phone Bank (Incoming Calls) • Litigation Process - Procedures Followed in Preparation and Filing of Lawsuits - Service of Citations - Timely Prosecution of Lawsuits - Collection of Judgments by Execution and Sale • Seizure of Delinquent Business Personal Property Accounts (upon client approval) • Bankruptcy Collections • Federal Agency Collections • Public Service Information • Ancillary Legal Services • Management Information Reporting and Coordination Page 32 Custom>Ized Workplans BGSM develops and utilizes workplan as a management tool for both immediate and long- range planning. The workplan developed for each client is based on our monthly analysis of the client's delinquent tax roll and is customized to take into consideration the collection style and approach advocated by the Jurisdiction Two types of workplans have proven effective an in- depth Six Month Workplan that targets special collection strategies and variable Monthly Workplans to achieve our overall goals A detailed profile of the delinquent tax roll is produced monthly to assist in the tracking of collections and the identification of target areas requiring special attention The North Texas (Dallas) Regional Office management team regularly develops in-depth six- month workplans for our clients We use this management tool in directing our collection, research and litigation efforts This workplan, along with monthly workplans and management reports, assists in the determination that we are directing our collection efforts and our personnel to the highest dollar and most problematic groups of accounts After confirming the target group, the managers develop daily operational plans in an effort to meet our goal of maximum tax collections We emphasize not only working hard, but working smart. We use our technology to analyze the tax roll and identify areas where we can maximize the revenue collected for each client. We have chosen a six-month time frame as appropriate for long-range planning purposes In January and July of each year a new six-month, in-depth workplan is developed The basic workplan is customized to meet the collection needs of our clients and is continually monitored for results and varied when necessary Included below are examples of the Six -Month and Monthly Workplans that we follow Six -Month Workplan (July - December) • Input Delinquent Tax Roll • Conduct complete analysis of delinquent tax roll • Structure six month workplan • Prepare and mail sample (5%) notification letters to eligible accounts • Receive taxpayer response to sample mailing • Identify and correct potential data errors • Prepare and mail (95 %) notification letters to all remaining eligible accounts • Respond to taxpayer inquiries and correspondence • Respond to return mail • Establish and monitor payment agreements Page 33 • Initial ownership and address verification on business personal property accounts • Initial telephone collection activities directed toward high dollar accounts • Provide client and media briefing (if desired by client) of collection program • Continue litigation activities from preceding year • Conduct Sheriff's Sale of foreclosed property • Conduct ownership and address research on business personal property for lawsuit filing • Conduct title research on real property accounts for lawsuit filing • Increase telephone collection activities • Establish and monitor payment agreements • Respond to taxpayer correspondence and inquires • Initial preparation for second mailing • Initial title search and verification of real property accounts • Continue litigation activities • Conduct Sheriff's Sale of foreclosed property • Prepare and mail second notification letter to all eligible accounts • Respond to taxpayer inquiries and correspondence • Respond to return mail • Initial batch filing of business personal property lawsuits • Initial research on potential tax seizure candidates (upon client approval) • Continue litigation activities • Conduct Sheriff's Sale of foreclosed property • Analyze remaining delinquency • Prepare real property lawsuits from current year delinquency • Continue with lawsuit filing and litigation activities • Prepare and mail special seizure notification (upon client approval) • Conduct initial tax seizures (upon client approval) • Conduct Sheriff's Sale of foreclosed property • Prepare and mail special notification letters to high dollar accounts • Prepare and mail special notification letters to multiple account owners • Continue lawsuit filing and litigation activities • Conduct Sheriff's Sale of foreclosed property Page 34 • Prepare and mail other special notification letters as necessary • Continue with lawsuit and litigation activities • Conduct Sheriff's Sale of foreclosed property • Analyze remaining delinquency and develop comprehensive workplan for next six months Activities During the Remaining Sias Months of the Year (January - June) • Prepare and mail other special notification letters as necessary • Conduct ownership and address research on business personal property for lawsuit filing • Conduct title research on real property accounts for lawsuit filing • Continue with lawsuit and litigation activities • Continue telephone collection activities • Conduct tax seizures with appropriate media coverage (upon client approval) • Analyze delinquent tax roll • Analyze collection and performance goals • Prepare and mail five-year notice, when applicable Sample Monthly Workplan • Conduct tax roll analysis - Identify bankrupt accounts - Identify federal agency accounts - Identify appraisal and assessment problems • Conduct title research on real property accounts • Conduct ownership and address research on business personal property • Set monthly collection and case disposition goals • Conduct tax dockets - Set cases for trial - Prepare and enter judgments - Prepare and set motions for summary judgment - Prepare and file dismissals - Prepare and file disclaimers - Process interventions filed by non-BGSM's clients - Prepare and send pre -default letters - Prepare and enter default judgments - Prepare and enter agreed judgments - Prepare abstracts of judgment and writs of execution • Conduct Sheriff's Sale of foreclosed property • File lawsuits Page 35 • Prepare and mail intent to seize letters (upon client approval) • Conduct pre -seizure telephone notification program • Prepare and mail special mailings (i e , multiple property owner letters, etc ) • Conduct tax seizures (upon client approval) • Prepare client collection reports (as requested) • Update Bankruptcy Tracking System daily • Review federal agency and bankruptcy collections • Review overall performance and collection goals • Review status of payment arrangements • Analyze delinquent tax roll and prepare for next monthly workplan Page 36 Taxpayer Notification Program Objectives To implement a collection strategy which begins with effective notification to taxpayers of their tax obligations, including an accurate statement of the current amount of delinquent tax, penalty, and Interest and tax account number. To build a foundation for multiple collection strategies based on the initial accurate notification of the proper owner or taxpayer. To make personal contact with delinquent taxpayers and to expedite payment. To design and implement specialized collection strategies that target high dollar, multiple, complex or sophisticated accounts To ensure that all taxpayers receive at least fm written notices of delinquency prior to sale of property. BGSM has developed an extremely sophisticated and effective written notification program Beginning in July in each year, our top priority is to notify taxpayers of their outstanding delin- quent taxes Our entire staff is involved with this process during the peak period This project continues throughout the year on a parallel basis with our other collection strategies BGSM has developed an efficient laser printed, computer mailing operation which enables our law firm to process the necessary volume of correspondence with a high degree of accuracy and dependability We are able to prepare and send an accurate statement of account, together with a personalized individual letter quoting demand for payment from our law firm, to every targeted individual on the tax roll within a 72 hour period Upon receipt of the delinquent tax roll, we send a tax collection letter to every eligible account This involves the implementation of a computer program integrating tax information with the text of a letter We accomplish this procedure through the use of a Xerox 9790 laser printer which generates letter -quality documents at the rate of 7,200 per hour Page 37 Simultaneously a color -coded remittance document is prepared which details the delinquency in a way most convenient to facilitate payment processing when it is returned to the client's collecting tax office in an enclosed window envelope The use of separate color coding for each client permits instant identification of the jurisdiction for which payment is bemg made. We carefully orchestrate the law fum's mailing activity to maximize the impact and sharply focus the attention of the public on each mailing. We choose a mailing date so that most taxpayers receive the demand for payment near a payday when funds might be available for prompt payment If our client desires, we send press releases in advance to all the area media We make every attempt to choose a mailing date that avoids other media events which would detract from coverage We make every effort to assure the highest level of quality control. Before we mail notification letters we randomly select 20 accounts from the entire tax roll that represent different types of accounts, exemptions and conditions Sample letters are generated and sent to the client's tax office which verifies all the information and total delinquent amounts These same letters are edited and verified by our staff for accuracy Before the mass mailing, a final production tape is generated and a new set of sample letters from this tape is again printed and verified by our data processing staff Before all letters are printed, we again do a final check of the letters To assure the quality control of our letters, a thorough review is made of statistical reports which are generated from the final mailing production tape. After the client's tax office approves the samples, we mail 5 % of all the letters Response to the 5% mailing is monitored to ensure that no problems exist with the mailing before we mail the entire file Within three days of the sample mailing, the remaining 95% of notice letters are mailed Our clients tax office's immediately begin to receive payments from delinquent taxpayers, and our office receives hundreds of telephone and written inquiries from the delinquent taxpayers within the first few weeks of our initial mailing The response to the mailing allows us to quickly stratify the remaining delinquent tax roll to facilitate collection assignments to different components of our law firm All returned mail is assigned to our address research staff to perform skip -tracing Bar coded remittance documents are scanned by a wand reader to produce listings of bad addresses in descending dollar order Page 38 After our initial mailing we begin to target delinquent taxpayers and unpaid high -dollar accounts for suit filing. Within 45 days of the first mailing, we have absorbed the impact of the response At this point we plan a second mailing to real property accounts that have not yet responded and to personal property accounts that have not been identified for suit filings We target personal property accounts of operating businesses for expedited lawsuit filing To maintain credibility for the second mailing, we file dozens of lawsuits simultaneously with the second mailing Accounts that remain unresolved after receipt of our first two demand letters require more specialized collection efforts We carefully analyze the profile of the remaining delinquency and implement a detailed workplan to maximize collections To augment the regular mass mailings, we target select accounts for special mailings which occur from time to time throughout the collection process These include specialized mailings to multiple property owners, absentee owners, business taxpayers, et al Each mailing is designed to focus the taxpayer on the imperative need to promptly address his or her delinquency Examples of these specialized, targeted mailings include • Intent to Foreclose • Intent to Seize letters • Intent to Sue letters • Intent to Sue letter after abstract, with copy to lienholders and other owners with copies of lawsuit petition attached • Letter to payment arrangement violators • Letter to lawsuits set for trial notifying all defendants of hearing dates, including default cases where such notification is not legally required • Letter notification regarding Judgment granted and "Abstract of Judgment" being entered • Intent to Sell letter with copy of the Order of Sale Every delinquent taxpayer receives at least five notification letters prior to Judgment and sale of property. Sample letters and statements detailing the delinquent tax amounts are included in Appendix B. Please note that our demand betters inform delinquent taxpayers to send payments directly to the client's tax office and to direct any inquiries, by phone or writing, to our BGSM Denton office. In this way, we ensure that the money is available as Page 39 soon as possible to the client, while it is our job to field the inquiries from the taxpayers in a way neither the tax office nor client's staff will be burdened by this additional workload BGSM has found that personal contact is an essential component of an effective collection program BGSM employs a team of professional collectors whose job is to collect delinquent accounts through direct contact with taxpayers. Our collectors have been trained and are knowledgeable of the Texas Property Tax Code, the Fair Debt Collections Act and each client's collection policies and guidelines. High -dollar and complex accounts, including accounts involving federal agencies, are assigned to our specialized phone collection units The individuals within our Denton and North Texas Regional telephone collection units are trained to be courteous and understanding, yet persistent During mailings and other peak season activities, our collectors receive hundreds of incoming telephone calls and are trained in tax matters to provide taxpayers with complete and concise information Our telephone collection unit tracks assigned delinquent accounts until the tax balance is satisfied Our collection staff utilizes targeted list of accounts prepared by our data processing department that stratify each client's delinquent accounts both in high dollar descending and alphabetical order These tools are utilized by our collectors with great effectiveness Our management team works with each client to determine the approach most suitable to that jurisdiction For example, homeowners are approached differently than commercial, industrial or undeveloped property owners Most often a delinquent tax on a home is a result of an escrow problem or recently retired loan, in which case we notify the homeowner of the delinquency and assist them in working with the mortgage company and/or the Tax Office Assessment problems, posting errors and other problems identified during the collection process are given to our research staff to be resolved Pertinent information is provided to the Appraisal District and Tax Office This process is sometimes lengthy because of the necessary interaction between the taxing jurisdiction, the appraisal district, the taxpayer and our law firm Page 40 Address Research/Taxpayer Location Program Objectives • Conduct address and ownership research on accounts identified as having Incorrect information • Prior to the filing of business personal property lawsuits, verify address and ownership information contained on the tax roll Conduct title research on all real property accounts prior to litigation to identify all owners and lienholders and to verify address information. • Conduct research on problem accounts that impede the collection of taxes. • Notify Tax Office and Appraisal District of changes in addresses and ownership as identified by BGSM. A successful tax collection program requires an intensive and sophisticated research and slip -tracing effort. Letters cannot be delivered or citations served without proper addresses for the delinquent taxpayers We have developed our research system to effectively and efficiently identify and resolve problems that impede the correct property owner from receiving our legal notices Correct property owner identification is critical to the following • Delivery of demand letters, • Ability of telephone collection personnel to contact the person responsible for the tax, • Determination of current registered agents, residents, and owners of companies and corporations in order to properly file business personal property lawsuits or request tax warrants, • Determination of lienholders, • Proper service of citations BGSM has developed the capacity to meet this need through deed and address research In addition to manual resources, BGSM has direct on-line computer access to numerous information sources Our staff performs research at various stages to the collection process, including correcting addresses from return mail, providing location and phone numbers to our telephone collection staff, identifying registered agents, corporate officers or assumed name holders and providing better addresses for service of citation This information is provided routinely on behalf of our Page 41 clients, their collecting tax office and the appraisal district Listed below is a synopsis of BGSM's address research and skip -tracking process • Returned mail received from mailings, • Subsequent to filing of suit, accounts of defendants who have not been served because of inadequate address information, • Business personal property accounts, • Real property accounts, • Accounts on tax roll lacking address information, and • Identification of telephone numbers to be used by tax collectors • Book/Directory Resources - Telephone Directory and Directory Assistance - Cole's Criss Cross Directory - Polk's City Directory - Rand McNally Credit Union Directory - United States Savings & Loan Directory - Post Office box holder information, forwarding orders and change orders • Computer Access - County Deed Records - County Assumed Name Records - County Marriage License Records - District and County Court Records - Zebec - AccuSearch - Phone Disk - Power Finder (CD Rom) - County Probate Records - County, City, School Tax Roll - City Water/Utility Records - Records of the Secretary of State - Trans Union Credit Bureau - Voter Registration Files - Motor Vehicle Registration Files - Most Recent Tax Roll Created by the Appraisal District • Other Sources Page 42 - Uniform Commercial Code Records - Telephone contact with taxpayers, neighbors, relatives or descendants of property owners • Address corrections are entered on our files, and an "N" code is placed on the account noting a new address In subsequent mailings, our updated address is used in place of the outdated address on the tax roll • Address corrections are routinely provided to the client's collecting tax office and the appropriate appraisal district for their use Bearing in mind that the goal is to maximize revenue for our client, we initially place special emphasis on larger dollar accounts and on taxpayers who own multiple properties However, during the course of our collection activities, we give all available accounts proper attention All delinquent accounts deserve attention, therefore, we diligently research accounts of all cate- gories (i.e., current and prior year delinquent, real estate and business, high and low dollar) Numerous computer capabilities exist to facilitate the search for addresses Accounts identified as having a bad address, as well as accounts identified by our law firm through returned mail or taxpayer contact, are compiled within our system and cross-referenced by taxpayer name, address, account number and amount owed Name sort and address sort listings of the entire tax file are also used for multiple account research Accounts in this category may have a good address on one or more accounts but not all, thus, the existing file can be used as a research tool Address research is an ongoing process As new addresses of delinquent taxpayers are found, the information is coded and applied to our in-house file, and sent to our client's tax office and the appraisal district for update Some law firms file business personal property tax suits using the ownership information and address contained on the tax roll Because the status of business accounts changes rapidly, BGSM has determined that effective collection of business personal property accounts requires specialized research of accounts prior to suit filing All personal property accounts are researched by our staff for identification and ownership. A high dollar listing of personal property accounts is prepared for use by our Denton office The Page 43 research staff finds the correct name and address of the owner, resident or registered agent for these personal property accounts Each individual account is then contacted and taxpayers are made aware of the taxes due If the delinquent taxes are not paid in full, or placed in an approved payment arrangement, lawsuits are then filed Payment arrangements are closely monitored, and if defaulted, the account is immediately placed in litigation Page 44 Taxpayer Assistance Program Objectives • Provide professional and courteous assistance to all taxpayers • Provide and manage payment arrangements according to the guidelines set forth by our clients Provide verbal and written bilingual assistance, when necessary Our collection activities, and particularly large mailings, generate a huge number of telephone calls and letters Each call or letter presents an opportunity to solve a concern or answer a question and thereby cause an account to be paid Likewise, each call or letter creates an opportunity to discredit our effort if it is not handled properly Thus, we place great emphasis on the training and attitude of our front line staffs. In our Denton and North Texas (Dallas) Regional offices we have 54 members of our staff available to answer taxpayer inquiries This number is increased during peak seasons when we handle more than 1,000 taxpayer inquiries per day Our attorneys are available to answer taxpayer questions and handle special situations as they arise All taxpayers are treated with politeness and professional courtesy. Although our collection strategy is based upon the maximum automation that technology will permit, the most advanced state-of-the-art technology cannot furnish the discretion, judgment or compassion necessary to provide the level of service on which BGSM prides itself Therefore, our approach to dealing with taxpayers' responses to a mailing reflects our keen awareness of their concerns By notifying all taxpayers, regardless of amounts due, and providing a well -trained staff for personal interaction, we endeavor to treat all taxpayers equitably Written and verbal information is provided to taxpayers in both Spanish and English We offer a taxpayer assistance program whereby taxpayers can request payment arrange- ments allowing them additional time to resolve their delinquent accounts. Our payment arrangement programs are based on guidelines authorized by our clients During peak periods our phone bank in our North Texas (Dallas) Regional Office responds to up Page 45 to 1,000 calls per day In Denton, we routinely receive between 50 and 100 calls per day in response to our demand mailings The nature of the incoming calls vary, including ownership changes, mortgage company problems, bankruptcy, appraisal problems, exemptions and hardships All incoming calls are handled by a well -trained staff whose attitude is to help taxpayers meet their financial responsibilities. Each phone inquiry is documented on a written taxpayer assistance form with information that includes the name of the person calling, date called, delinquent taxpayer's name and account number, amount due, nature of the call and response given to the person calling We maintain this information until the account is paid so that we may quickly respond to future inquiries Page 46 Litigation Process Objectives • Conduct thorough research prior to the filing of each lawsuit • Conduct a litigation program that lends credibility to the entire delinquent tax collection program Target delinquent accounts for litigation that would not get paid unless they are sued • Prosecute all lawsuits filed to judgment and foreclosure, if necessary • Conduct, if necessary, seizure and sale of business personal property to recover delinquent taxes A successful collection effort must have an effective litigation component While every reasonable effort is made to collect a delinquent account without resorting to legal action, it often becomes evident that legal action is the only viable method to collect taxes Our philosophy is that an aggressive, highly visible legal campaign lends vital credibility to the collection process and therefore renders the demand letter and telephone contacts more effective We choose accounts carefully for suit, emphasizing high dollar/multiple year accounts Our task is to educate non -taxpayers to understand that disregarding their tax obligations will inevitably result in sale of their property and imposition of heavy penalties, interest, court costs and attorneys' fees An effective delinquent tax program makes good taxpayers out of bad taxpayers, resulting in many delinquent taxpayers paying their subsequent year's property taxes before they become delinquent In our experience lawsuits are necessary When Alternatives Are Exhausted Our law firm mails several warning letters to, and often makes personal telephone contact with, delinquent taxpayers These efforts trigger a clear signal of imminent litigation If disregarded, a lawsuit must follow 2 To Establish Credibility Lawsuits lend credibility to the entire collection program Page 47 Typically, delinquent taxpayers are persons who have disregarded repeated notices from the tax office The prosecution of tax lawsuits is integral to a successful collection effort 3 Where Perishable Property is Present Certain business personal property accounts are identified through research and telephone contact to be on the verge of going out of business, thereby putting the claim at risk Once identified, these accounts are immediately prepared for suit or seizure 4 To Collect High Dollar/Complex Delinquency Very often high -dollar accounts are complex in nature If payment cannot be realized through demand mailings and personal contact by a professional collector, a lawsuit is often necessary to attain the visibility and results necessary 5 For Problem Resolution Occasionally an account is so complex (e g , unknown heirs) that the only way to resolve it is to allow the court to intercede and force a foreclosure sale for payment of taxes to put the property productively back on the tax roll BGSM recognizes that the mere filing of lawsuits is not sufficient. Process must be served and cases must be set and tried to judgment. Judgments must be collected by execution and sale if necessary. It is very important that the taxpaying public not be able to discern a pattern for the filing of litigation Therefore, cases must be selected across the economic and geographic spectrum However, to optimize the use of our resources, as well as the resources of the Court, we give greater weight to higher dollar amounts as well as accounts with multiple years of delinquency when prioritizing our lawsuit fihng efforts. Procedures Followed in Preparation and Filing of Lawsuits Our law firm has the capacity to generate by computer as many lawsuits as the local court system can effectively handle BGSM enjoys an excellent working relationship with the District Clerk's office and provides many services in order to expedite litigation We prepare the petitions and citations in accordance with the Texas Rules of Court, Texas Property Tax Code and local court rules Before personal property lawsuits are filed, information extracted from the delinquent tax roll is merged with the updated ownership and address data obtained by our collection/research staff Our system is such that literally hundreds of personal property lawsuits can be prepared within a Page 48 matter of days Before the filing of real property lawsuits, every account is abstracted for title verification We then merge the title information, together with the last known address of the defendant, with accounts receivable information extracted from the delinquent tax roll Unlike other law firms that file lawsuits `off the tax roll" without performing title research prior to issuing citations, our law suits are well researched in order that they can be prosecuted as expeditiously as possible Before filing, all legal documents are approved by our attorneys and subjected to stringent verification procedures All defendant data are rechecked and accounts are once again checked for payment This procedure eliminates any blind filing errors The lawsuits are then assembled into sun packets that contain a copy of the petition and citation for each defendant and a file copy of each document The lawsuit documents are hand -delivered to the District Clerk's office after assembly and verification is complete In accordance with each client's preference, copies of the lawsuit lists are delivered to the client's tax office We utilize local sheriffs' and constable's offices and, when necessary, private process servers or certified mad to obtain service on the defendants in our lawsuits It has been our experience that fifty percent (50%) of the accounts are paid when the defendants are served, therefore, we place great emphasis on quick, effective service In certified mail cases, our law firm provides the district clerk's office with pre -addressed envelopes to assist the clerk's staff in mailing the citation as soon as possible and to ease the workload As allowed by law, the costs for service of citations are borne by delinquent taxpayers and included in the court costs associated with the filing of the lawsuit Our clients bear no additional costs related to the service of citations for delinquent tax lawsuits. Every lawsuit we file in District Court is prosecuted as quickly as logistics permit We have an effective, proven system for service of process and continuing review of pending files for service on all defendants Once service of process is obtained on all defendants in a particular case, we immediately set the lawsuit for trial Page 49 At times it becomes necessary to reduce a judgment to sale This is an integral part of our program Thirty (30) days from the date of judgment, real estate judgments have an order of sale issued and the property is then put up for sale within the legally prescribed time limits Again, this is the normal procedure in obtaining payment on an unpaid judgment, which is coordinated at various intervals with our clients so they can exercise appropriate discretion With our client's approval, writs of execution can be utilized to collect personal property taxes In personal property lawsuits, if the taxpayer is still available and has property that can be levied upon for payment of his taxes, a writ of execution is issued for such property to be taken and later sold, similar to the tax warrant process described on the following page Often, obtaining the writ of execution and appearance of law enforcement officers at the taxpayer's place of business will result in payment Page 50 In addition to sale under execution, the Texas Property Tax Code provides for summary seizure and sale of business personal property under the authority of a tax warrant No suit or judgment is necessary Because of the perishable nature of personal property taxes, BGSM has found it effective to use tax warrants and conduct seizures on a limited basis Due to the rather drastic and summary nature of the seizure remedy, we limit this remedy to a relatively small number of well -researched and documented accounts Before property is seized, special notification warning letters stating our "intent to seize" are mailed to all accounts and physical surveillance is conducted In addition, telephone collectors attempt collection and determine that the property subject to seizure still exists Each year BGSM targets hundreds of seizure candidates, yet very few tax warrants result in the actual seizure of property We feel that we are uniquely qualified to advise the taxing entities regarding the legality of seizure and sale BGSM has twice successfully litigated the constitutionality of this remedy before the Supreme Court of Texas in the cases of Shaw v Phillips Crane & Rigging, et al , 636 S W 2d 186 (Tex 1982) and Querner Truck Lines, Inc v State, et al , 652 S W 2d 367 (Tex 1983) The judgment of the Supreme Court of Texas in the Phillips case was appealed to the Supreme Court of the United States Upon Motion to Dismiss or Affirm filed by BGSM, the Supreme Court of the United States dismissed the appeal for want of a substantial federal question Page 51 Bankruptcy Complete representation in bankruptcy matters is provided to our clients as part of our basic legal services Objectives a Monitor bankrupt accounts a File proof of claims a File claims for payment of post -petition taxes as admunstrattve expenses a Represent our clients at creditors' meetings a Prepare and file all necessary legal documents The number of bankruptcy cases filed in Texas exploded in the mid-1980's due to the downturn in the energy and real estate sectors of the State's economy Although the economy has stabilized, a high number of bankruptcies continue to be filed each year The bankruptcy cases filed today tend to be more complicated and litigious, and debtors are increasingly targeting ad valorem taxes for reduction or disallowance Once bankruptcy is filed, ordinary collection techniques cannot be used Federal law prohibits any attempt by creditors to collect from a bankrupt debtor by means other than those specifically provided for in the Bankruptcy Code Since a large portion of many jurisdictions' delinquent tax rolls have been placed under the jurisdiction of the United States Bankruptcy Courts, BGSM devotes significant resources to assuring that the proper procedures are followed to maximize our clients' collections from bankrupt debtors The vast majority of the bankruptcy cases which involve our clients' accounts are filed in the Eastern District of Texas in the Plano Division or in Sherman, Dallas, Fort Worth or Houston BGSM has bankruptcy attorneys strategically located in offices across the state to ensure a prompt response to any developments in cases in these courts BGSM is also currently representing its clients in bankruptcies in almost every state, from New York and Florida to Arizona and Oregon BGSM's Metroplex Bankruptcy Department includes a full-time attorney, a bankruptcy coordinator, three bankruptcy assistants, and a full-time bankruptcy clerk The primary Page 52 responsibility of this department is to oversee the collection of delinquent tax accounts in bankruptcy, but they also act to protect current year taxes of our clients when necessary The Bankruptcy Department researches delinquent accounts to determine the amounts owed, files proofs of claim, monitors case progress, oversees the distribution of funds from debtors and trustees to our clients, reviews pleadings, and files whatever motions or pleadings are necessary to protect our clients' rights The Bankruptcy Department utilizes a sophisticated computerized bankruptcy tracking system which enables it to provide the maximum service to BGSM's clients In all bankruptcy cases the first step is the identification of the bankrupt entity BGSM uses a variety of resources to identify the debtor and accounts in bankruptcy, such as • Notices and pleadings received from the debtor or the court, • Phone contacts made by our collections staff, • Newspaper articles, • Information found in our pending state court lawsuits, • Responses to our massive mailings • Subscriptions to bankruptcy reports, and • Contacts in the bankruptcy legal community Once the debtor and accounts are properly identified, a proof of claim is promptly filed Chapter 7 liquidation proceedings are then monitored for passage of assets subject to our liens to a non - bankrupt entity and for the personal discharge of the debtor When either of these events occur, BGSM proceeds to collect the delinquent taxes in rem, based on the lien on the property which was either exempt from the bankruptcy or which is no longer part of the estate being administered by the Trustee Chapter 13 individual reorganization cases are monitored to ensure that the plan of reorganization (1) properly classifies the tax claim, (2) provides for the payment of the secured claim amount with interest, and (3) does not affect the later enforceability of the tax hen(s) Chapter 11 business reorganizations are closely monitored to protect our clients' rights and remedies BGSM actively participates in the plan approval process to make sure the plan provides for the highest recovery possible under the Bankruptcy Code Although many law firms follow a defensive strategy in collecting through the bankruptcy process, BGSM's policy is to be proactive As part of this policy, the payment of pre -petition taxes under a plan of reorganization and the direct payment of post -petition taxes are monitored so that proper collection activity can be instituted upon default When necessary, BGSM objects to reorganization plans which do not meet its standards, files appropriate motions to allow foreclosures to proceed during the bankruptcy, attends creditors' meetings and questions the debtor about the accounts owed, and appears at hearings which might affect our clients' ability to be paid the full amount owed In addition, BGSM defends against objections to our clients' claims and attempts to reduce the amount of taxes owed BGSM's representation of taxing units in bankruptcy courts throughout the country has resulted Page 53 in the development of highly skilled attorneys and support staff in this field This experience has been disseminated throughout the other departments of the law firm through written guidelines, workshops and seminars BGSM has held several bankruptcy seminars for our clients so that all systems and procedures can be fully integrated The expertise of BGSM's bankruptcy attorneys is recognized throughout the state and our attorneys are often featured as speakers at bankruptcy and tax seminars Federal Agency Collections The nationwide collapse of the banking and savings and loan industries has presented new obstacles to the collection of delinquent tax accounts over the past few years As failed institutions were taken over by the federal government, the agencies charged with the task of liquidating their assets have become major penholders and landowners in North Texas BGSM has been at the forefront in fighting the efforts of the Federal Deposit Insurance Corporation (FDIC) to avoid its liability for ad valorem taxes Our law firm has developed comprehensive collection strategies, based in part upon our bankruptcy experience, whereby we have been able to recover taxes, penalties and interest that may have otherwise gone uncollected In the early 1990's BGSM's focus was on defending its clients' interests in litigation such as Irving ISD v Packard Properties In September 1992 the United States Court of Appeals for the Fifth Circuit ruled in our favor in this case and held that the FDIC cannot extinguish tax liens, including penalties and interest, that attached prior to the FDIC's actual ownership of real property BGSM also prevailed against the FDIC's attempt to halt foreclosures on property where the government is merely a penholder Currently, BGSM works through the federal agencies and title companies to insure that all taxes, penalties and interest are paid as soon as possible BGSM has established an administrative claims process that has been successful in collecting payments on behalf of failed institutions from the government Additionally, although federal law prohibits the sale of government owned property, BGSM works with the federal agencies and keeps them aware of the tax liens and the fact that the sale or other transfer of the property will be difficult without clear title, i e , the taxes, penalties and interest are paid in full prior to the transfer BGSM has been recognized as the leader in the field of federal agency collections We regularly sponsor seminars on federal agency collection strategies, and our attorneys are often speakers on this topic at non -firm sponsored tax seminars Because of our expertise in this specialized area of collections, and the substantial contacts we have established within the federal agencies, BGSM's clients benefit by a greater and earlier recovery of revenues. Page 54 Public Service Information BGSM has found that coordinating collection activities with local media coverage can have a very beneficial impact on collections Media coverage is designed to inform property owners of collection efforts and deter delinquency If our client desires, and with their approval, BGSM will prepare press releases and/or press conferences to announce our annual mailing and litigation efforts This can be done on a regular basis, i e, on the first mailing, initial suit filings, seizure operations, etc , or on selected occasions such as winning a major lawsuit Miscellaneous Revenue Collections BGSM will assist the City, as requested, in the legal collection of other delinquent revenue accounts To meet our clients' needs, we have adapted our tax collection systems to collect other delinquent receivables, including paving, weed, demolition and secured closure liens To create a successful miscellaneous receivable collection effort, we design programs unique to the needs of each client for the collection of these accounts These efforts generally occur on a limited, and as needed basis We will be happy to explore with the City how we can provide additional collection services Ancillary Legal Services BGSM represents our clients in lawsuits arising from collection activities, including the collection of taxes through lawsuits filed by public entities in the acquisition of property pursuant to the Property Tax Code for public purpose use We represent taxing entities in all levels, trial and appellate, in state and federal courts We maintain an Austin office which facilitates advising our clients on property tax law and practice emanating from acts of the Legislature, opinions of the courts, opinions of the Attorney General, and interpretations of property tax law promulgated by various state agencies including the State Comptroller's office (Property Tax Division) Page 55 Management Information Reporting and Coordination Management reporting is another key to effective client coordination and collection success We provide our clients with reports concerning collection results, workload and status of accounts Management of our multi -faceted services requires reliable control of information and accurate reporting Because of our computer capability, we can provide information that serves as a valuable tool in budgeting and revenue forecasting Reports can be generated which can be used for the following purposes • To provide a profile of the delinquent tax roll (by property type, dollar range, years of delinquency and frequency of delinquency), • To track collection progress, • To track lawsuits and the litigation process, • To track bankruptcy, and • To highlight problem areas requiring special work programs (e g , bad address, appraisal problems) Upon request, our staff will provide annual revenue estimates to the City of Denton as part of the City's budget process We will also assist in providing tax related information should the City of Denton be involved in a bond rating review process In addition, BGSM will provide the City with quarterly performance reports which could be submitted to the City Council for review. If desired, we will appear before our City Council to discuss our collection efforts and address any questions they may have Page 56 VII. Data Processing Capabilities (RFP Selection Criterion 1 c) Our law firm has pioneered the application of high technology to the delinquent tax collection process since entering the field in 1980 From our beginning, representation of the largest taxing jurisdictions in Texas has caused us to invest millions of dollars to develop the very latest, state-of-the-art data processing and communication technology for the specialized purpose of collecting taxes, both delinquent and current This technology has enabled our law firm to develop software applications that meet the changing needs of our clients for both tax and miscellaneous collection support Recognizing our clients' growing needs for advanced software application, we organized United Governmental Semces of America, Inc. (UGSA), a computer service company which is wholly owned by our law firm Taxing jurisdictions of all sizes throughout Texas have benefited from the technology that we have developed These capabilities are described in much greater detail below Also included in this section is an itemization of our hardware and software resources Each year UGSA processes over 2,000,000 delinquent tax accounts for our clients throughout Texas We mad approximately 1,500,000 demand letters annually in addition to preparing more than 30,000 lawsuits BGSM's Dallas Office is equipped to handle in excess of 1,000 taxpayer inquiries per day during peak periods Our data processing staff designs and creates specialized reports and listings that aid our staff in Denton and Dallas in their collection, research and litigation efforts We determined early in our practice that delinquent tax collection is a highly specialized area of data processing However, extensive research revealed that existing software failed to meet our clients' requirements for a high volume collection effort Consequently, from our inception, we have employed our own systems designers and computer programmers to develop specialized applications of the latest technology for the specific needs of our law firm and our clients The result has been the development of DELTAX and CATS, copyrighted software systems specially designed to support all aspects of the delinquent tax collection and litigation programs Most recently, the staff has developed and installed BATS, a statewide bankruptcy tracking system As we service our clients throughout the state, we are continuously developing, testmg, applying and perfecting our system methods. As new procedures are developed, every client benefits from these new developments and ideas Data Processing Approach The design of our delinquent tax collection support software is predicated on the belief that the ultimate repository of all tax information is, and should be, the tax records of the taxing Page 57 jurisdiction Therefore, no attempt is made within our system to parallel the dynamic files maintained by our client's tax office Rather, our system is based upon receipt of periodic, preferably monthly, copies of the Tax Office files reflecting outstanding delinquency During periods of more intense delinquent collection activity involving high taxpayer contact, more frequent copies of the delinquency files may be requested to allow our customer service staff and legal assistants to have more timely records of payments and adjustments to the files This access provides the most timely information on a tax account for purposes of customer service inquiries, litigation research or other direct contact with taxpayers Our system retains a complete history of all collection activities related to each delinquent account. This history system includes the tracking of address changes, increases or decreases in base tax owed, taxpayer inquiries received by our office, the date and type of each mailing, as well as codes to indicate if a letter was returned undelivered If a jurisdiction has a requirement for special types of history information, such as property value or telephone contact, our system can easily be adapted to those requirements Delinquent Tax Collection Support Systems UGSA uses DELTAX, a software developed and refined by our own staff through years of actual use to support all aspects of the delinquent tax collection system The software has been optimized to take advantage of the best features of computer systems ranging from large mainframes to desktop micro -computers This diverse combination of hardware and software allows us to combine efficiency with personalized taxpayer service The computer technology interfaces with all facets of the collection program including taxpayer assistance, telephone collection, bad address and ownership research, lawsuit generation and management reporting Based on the workplans for each client, the following products are generated • Regular Mailings - high volume personalized mailings accompanied by detailed tax statements, used for all accounts subject to mass mailing activity, • Special Mailings - highly personalized low volume mailings usually consisting of 200 or fewer letters to taxpayers falling within selection criteria targeted in the workplan, • Lawsuits - tax database and automated title report information merged to produce laser generated petitions, citations and automated updates to the lawsuit tracking system, • Specialized Listings - reports detailing the status of various portions of the delinquent roll such as bad address accounts, returned mail, accounts available for lawsuit, accounts Page 58 available for mailing, hardship accounts and other subsets of the roll, Management Reports - analytical reports of tax roll information that enable our law firm to design a workplan that maximizes collection efficiencies The reports may also be used to forecast collections for budgetary purposes Automated Case Tracking System To more effectively process lawsuits through the court system, our law firm has developed a sophisticated on-line Case Tracking System (CATS) designed for the specific use of our law firm's attorneys, paralegals and litigation assistants CATS is an on-line computer tracking system designed to track the movement of cases in the courts and generate legal documents This system gives the litigation staff the ability to inquire into and update all information regarding defendants, plaintiffs, tax amounts, legal descriptions, account numbers and the general litigation status of each lawsuit This state-of-the-art system provides BGSM with the ability to determine needed actions to prosecute each lawsuit to final disposition Automated Bankruptcy Tracking System The Bankruptcy Tracking System is an on-line bankruptcy tracking and document generation system The system's centralized file design allows for the consolidation of multiple client and account cases into one bankruptcy case entry This permits BGSM to track, analyze and prepare documents for all pending bankruptcies and client accounts on a statewide basis Data Processing Hardware Resources This section of our proposal itemizes our data processing hardware and related resources IBM 9377 Model 90 Mainframe 1 - IBM 9377/90 II Mainframe with 16 Megabytes of Main Memory and 16 Megabytes Virtual Memory Storage 4 - IBM 3480 Tape Cartridge Drives 4 - STC 4500 Series Dual Density Tape Drives, 1600/6250 BPI 8 - IBM 3380 Disk Drives 1 - STC 1800 LPM Printer 1 - XEROX 4050 Laser Printer capable of printing 50 pages per minute Page 59 Operating Systems DOS MVT/VSE Languages CICS 1 5 COBOL 74 ASSEMBLER DYL-280 VSAM The IBM 9377 Mainframe operates DELTAX, CATS and BATS to process delinquent tax infor- mation for each client we represent on more than one million delinquent accounts statewide Our North Texas (Dallas) Regional Office has on-line access to the system through high-speed data Imes We currently have 75 terminals statewide that access the system simultaneously on a daily basis, while the system can accommodate up to 300 terminal users at one time The system allows our law firm to merge account information from different taxing entities within a regional area (i e , county) This enables us to provide the taxpayer with a total balance of taxes owed to all taxing entities and the total amount owed by a single taxpayer with multiple properties (i e , real estate developer) The system is also helpful in researching bad addresses by comparing addresses of various taxing jurisdictions within one county UGSA has developed and operates the Tax Office Collection and Management System used with the Hewlett Packard equipment described in this section The Hewlett Packard Systems are accessed by high-speed telephone lines from tax offices across the state who utilize the system Both HP Series computers can collectively process more than one million accounts This configuration is currently used by the City of Harlingen Tax Office, Harlingen CISD and Los Fresnos ISD for remote processing of tax information The system can be configured to accommodate 64 terminal users simultaneously on a daily basis HP3000 Series 68 consisting of: 16 MegaBytes of Main Memory 2 - General I/O Channel, allowing up to 6 external device each (i a disk drives, tape drives, printers) 1 - ATP System Interface Board 2 - ATP Direct Connect Port Controller, supporting up to 30 terminals each 10 - 7937 571MB disc drives Page 60 I - 1600/6250 Characters Per Inch Tape Drive 1 - 1600 Characters Per Inch Tape Drive 1 - 600 Lines Per Minute Printer 2 - Remote Printers 2 - Penril VCX Intelligent Networking Multiplexors 4 - Black Box Multiplexors 4 - Black Box 9600 Modems HP3000 Series 935/XL consisting of: 100 MegaBytes of Main Memory 3 - HPIB 1/0 Channel, allows up to 6 external devices 1 - Ethernet System Interface Board 2 - 7937 571MB Disc Drives 2 - HP6000 1 34FL 1351MB Disc Drives 3- HP 16MX DTC allowing up to 16 users on each 1 - Fiber Link interface 1 - 300 Lines Per Minute Printer Novell Network System consisting of: Server: 486-66Mhz PC 1 Gigabyte of Hard Drive Space SCSI -II Controller Arcnet Network Interface Card Novell 2 22 Network Operating System Workstations: Include 386, 486 & Pentium CPU's Minimum 2MB of RAM, maximum 16MB Hard Drive space ranges from 100MB to 800MB Dual floppy drives, high density 101 Enhanced AT Keyboards Super VGA Non -Interlaced Monitors Arent Network Interface Cards 120 & 250MB Tape Drives Microsoft DOS 6 22 Some PC's include Microsoft Windows for Workgroups 3 11 0 Microsoft Ergonomic Mouse Page 61 This Local Area Network was used to implement the UGSA Tax Collection System operating on both the Dallas County and the City of Dallas mainframe IBM compatible computer UGSA has developed and installed software to replace both the Dallas County and the City of Dallas tax collection software Personal Computers: Include 386, 486 & Pentium CPU's Minimum 2MB of RAM, maximum 16MB Hard Drive space ranges from 100MB to 800MB Dual floppy drives, high density 101 Enhanced AT Keyboards Super VGA Non -Interlaced Monitors 120 & 250MB Tape Drives Microsoft DOS 6 22 Some PC's include Microsoft Windows for Workgroups 3 11 or Windows 95 • Microsoft Ergonomic Mouse • Fax and Remote Access Capabilities Some PC's include full multi -media, exceeding MPC standards • double & quadruple speed CD -ROM's • 16 bit sound cards, 44 1 Khz sampling rate • stereo speakers Prmters: Hewlett Packard LaserJet Series II's Hewlett Packard LaserJet Series III's Hewlett Packard LaserJet Series IV's Hewlett Packard Color Printer 560C Memorex/Telex 5038 Departmental Printer Terminals: ADDS 3220 Terminals ITT Courier Terminals Graphics Equipment 1 - Perq P2 Workstation with Cipher Tape Drive that runs the Intran Metaform Graphics software The Intran Metaform system has four interactive components Page 62 1) Graphic Builder - Allows the user to design and edit graphic images, signatures, and logos on the screen 2) Font Builder - Enables the user to create new fonts by modifying fonts that have been brought in the system from a laser printer or other media 3) Form Builder - Allows the user to design, edit and modify individual forms on the screen 4) File Manager - Flexible database management system that lets you control how all the pieces of your system integrate with each other It also allows the user to receive and transfer files from other media devices Page 63 VIII. Equal Employment Opportunity and Affirmative Action (RFP Selection Criterion 1 k) Blair, Goggan, Sampson & Meeks is an Equal Opportunity Employer The law firm has always complied with not only the letter but the spirit of the law regarding the Civil Rights Act of 1964, and related equal employment opportunity legislation DeMetris A Sampson, a partner in the law firm, serves as BGSM's Affirmative Action Liaison Officer for our North Texas Regional Office Our firm demonstrates strong support for minority and women business enterprises, as well as to our commitment to providing ownership and career opportunities for minorities and women within our firm BGSM's Affirmative Action Program and Minority/Women Business Enterprise (M/WBE) Expenditure Plan includes minority and female participation in the following ways • Partnership/Ownership Interest: Ms DeMetris A Sampson is an African - American female who has been a partner in the law firm since February 1989 • Employment of Minorities and Women Within BGSM: Our firm employs a high percentage of minorities and women, including the ranks of attorney, managerial and professional staff Total Minority 66% African American 67% Hispanic 27 % Other Ethnic Minorities 6% Anglo 34 % Gendero Female 76 % Male 24 % Minority 27 % Anglo 73 % Female 67 % Male 33 % Page 64 • Minority Law Clerkship Program: In addition to providing career opportunities through permanent employment, we have also provided a Minority Law Clerkship Program each summer since 1987 • Subcontractors: Our Dallas office contracts with minority and women -owned firms for legal assistance, process service and abstract and title research 100% of all work subcontracted has been with minority or female businesses • Vendors and Suppliers: Our firm's policy is to give preference to M/WBE companies M/WBE have provided the following goods or services office supplies, bulk purchase of envelopes, engraved stationery and printing, computer services and equipment, travel needs, temporary labor, refreshment supplies, florists, catering and media relations During the 1995-1996 fiscal year, our Dallas office expended over $1.8 million with minorities and women Our commitment to Affirmative Action and the inclusion of minorities and women in all aspects of our contract is unparalleled by any other delinquent tax collection law firm Page 65 IX. Suggested Performance Criteria Because an effective delinquent tax collection program is comprised of a comprehensive set of services, we recommend that numerous criteria should be utilized by the City of Denton in evaluating the success of a contract However, revenue production is the reason the contract exists and therefore, should be the key element of consideration In response to the RFFs request for suggested performance criteria, we have detailed a number of items which the City of Denton can quantifiably measure the success of the contract These include * Revenue production • Quality and success of the litigation program • Scope of services provided • Degree of account resolution * Degree of law firm's responsiveness to taxpayer concerns • Quality of the data processing capabilities and support provided • Quality and extent of overall staffing and assistance to the City of Denton • Quality of management reporting The most important criterion for the City Denton to utilize in evaluation of the success of the contract is revenue production. This is the primary goal of the contract and can be measured by the City on a monthly and annual basis A proven and predictable track record is critical as both a selection criteria and performance measure. The overall quality and success of the law firm's litigation program can be measured through reporting techniques The quality of the lawsuit preparation, the timeliness by which the cases are handled and the disposition are all important performance criteria The scope of services provided is indicative of the success of the program A comprehensive set of legal, collection, research and support services should result in a greater amount of revenue A workplan should be continually monitored and updated based on collection results and information provided in management reports Additional performance criteria related to scope of services include the amount of generalized and targeted mailings to delinquent accounts, the amount of successful telephone collection calls made, the success of the litigation conducted and the support services provided to the City Page 66 The extent to which problem accounts are resolved, and the law firm's efforts result in improved collectibility of a tax roll, is an important performance criteria The results of various research efforts involving bad addresses, lawsuit service and unlocatable taxpayers can be measured The degree of a law firm's responsiveness to taxpayer concerns can be measured by the quality and timeliness of the law firm's correspondence sent in response to taxpayer inquiries, by measuring the volume of taxpayer complaints and resolution of these problems and by observing the staff assigned to this project It goes without question that the staff must conduct business with taxpayers on behalf of the City in a professional, fair and equitable fashion The data processing support that the law firm makes available to the City is another important performance criteria It is critical that the law firm's technology be state-of-the-art, the hardware adequate to handle large quantities of data rapidly and the programming staff knowledgeable The staffing that the law firm dedicates to the project is an important performance criteria The quality and experience of the staff assigned to this project are both important determinants The extent to which the project team is responsive and is capable of serving as an extension of the City staff is vital to the success of the program The City can measure the extent of direct and indirect assistance it receives from the law firm and quantify the amount of City staff time that can be redirected to other projects The quality and timeliness of the management reporting is important Reports that detail collection results, workload statistics, status of accounts and litigation tracking are helpful to the monitoring of a collection program and serve as valuable tools in revenue forecasting and measuring the success of the law firm's performance Page 67 X. Division of Responsibilities We have attempted throughout our proposal to describe our law firm, staff, data processing expertise and the scope of services we employ to collect delinquent taxes for the City of Denton The purpose of this section is to recap the points listed in the City of Denton's Request for Proposals under "The Law Firm Will" and "The City of Denton Will " BGSM and Mike Gregory affirm their willingness to provide the following services and functions as stated in the RFP 1 Receive and review the delinquent tax rolls 2 Substitute as attorney of record on all existing tax suits and interventions, pay all court costs and filing fees related thereto 3 Perform all research and paperwork necessary to provide taxpayers and City Tax Collector with correct or corrected information to update the City files, including forwarding addresses as located 4 Submit monthly reports regarding suits filed on accounts and provide City Tax Collector with duplicate letters sent to taxpayers 5 Provide a quarterly report to City staff in sufficient form that it could be submitted to the City Council for review Provide monthly reports on pending suits, judgments and foreclosures 6 File suits on delinquent taxpayers that do not respond in accordance with the demand of and directions provided by the City of Denton 7 Intervene in delinquent tax suits filed by Denton County and Denton Independent School District, if applicable, pursuant to Section 33 44, Property Tax Code 8 Firm shall be responsible for filing of delinquent tax claims in bankruptcy proceedings, including claims and actions required to be filed with Federal agencies such as FDIC, and consult with City of Denton City attorney's office on such matters 9 File suits for collection of delinquent taxes pursuant to Sections 33 41 and 33 42, Property Tax Code, or file suits of judicial foreclosure of tax liens 10 Follow through on all suits and provide reports to the City of Denton 11 Provide the City recommendations, for qualified individuals, pursuant to Section 33 02, Property Tax Code, regarding the advisability of an installment agreement being entered into between City and taxpayer 12 Provide legal support and research as needed a Provide recommendations to not pursue a case if a case is legally barred, is weak, or the likelihood of collection low or unlikely b Provide City of Denton's Assessor/Collector with legal advice and written opinions upon request 13 Only collect those groups or individual accounts which the City of Denton determines in its Page 68 discretion are to be collected by firm 14 Provide all supplies and postage necessary to handle billing and necessary mailings 15 Obtain appropriate title research and relevant ownership records of all property upon which a suit is to be filed, at firm's expense 16 Provide total and complete delinquent tax collection, including court filing fees and all other costs, pursuant to Sections 33 48 and 33 07, Property Tax Code, and will indemnify and hold the City harmless in any suits or liability that may result from the firm's delinquent tax collection activities 17 Propose a method of assuring that the amount of delinquent taxes collected by the Law Firm will be at least equivalent to the amount projected to be collected by in-house staff for each fiscal year of the firm's engagement (See method of assurance at end of this section ) 18 Propose a method of payment 19 Be entitled to fees on amounts actually collected while this contract is in effect, pursuant to Section 33 07 of Property Tax Code 20 Provide information concerning minority involvement regarding the work to be performed by your firm pursuant to this engagement Indicate the ethnic makeup and the gender of your staff, both at present and projected, if not fully staffed Also indicate if you would consider sub -contracting parts of this contract to minority contractors and, if so, please describe your plan to do so Also indicate your compliance with EEOC regulations and guidelines 21 Coordinate the filing of all tax suits with the City Attorney and all tax collection efforts with the City of Denton Tax Department 22 Provide for orderly delivery of all copies of all complete tax files to be turned over to the City Attorney when the contract is terminated 23 Make recommendations to Tax Department on accounts to be collected (i a mobile homes, aircraft and business personal property) by summary seizure (Tax Warrants) and perform all legal work necessary to reduce those accounts to payment of taxes pursuant to Sections 33 21, 33 22 and 33 23, Property Tax Code 24 Maintain collection rate of sixty (60%) percent of delinquent tax base, with penalty clause initiated on the firm should the collection rate fail to reach 60% 25 Provide concentrated effort toward the collection, within the statute of limitation period, of delinquent mobile home and business personal property accounts 26 Upon request by the City, undertake the collection of delinquent accounts for special paving assessment Lens, substandard housing demolition liens, and privileged (mowing) liens 27 Upon reasonable request, represent the City in the acquisition of property pursuant to the Property Tax Code for public purpose use 28 The firm should be willing to enter into a three year contract with the City with two additional one year optional extension periods being provided for Page 69 BGSM and Mike Gregory accept that the City will perform the following functions 1 Provide a roll of delinquent accounts to be collected 2 Provide for updated information (i a adjustments, payments, errors, double assessments, or other discrepancies) on delinquent accounts to be forwarded to the law firm 3 Be able to terminate contract for any reason, with or without cause, upon thirty (30) days' written notice to the firm 4 Pay the law firm fifteen (15%) percent of the amount of all delinquent taxes (pursuant to Section 33 07, Property Tax Code), penalty and interest actually collected an paid to the collector of taxes during the term of this contract The collector shall pay said funds to the firm monthly by check 5 Notify the law firm of any taxpayer that has filed bankruptcy, when the City has been notified of such 6 The City will allow firm an additional six (6) months to reduce to judgment all suits filed prior to the expiration of the contract 7 Prepare and mail tax statements at least thirty (30) days [no more than sixty [60] days] prior to delinquency date, giving notice to the delinquent taxpayers of the potential add -on cost of collection Performance Commitment (RFP Selection Criterion 1 1) Based on our law firm's proven experience from 1986 to 1993 in collecting delinquent taxes for the City of Denton, and our recent representation of Denton ISD, we are in a unique position to make collection projections We commit that our collections will total at least 60% of the total amount of base tax of current year delinquency that exists on July I (the new "turnover" roll) by the end of the twelve month period beginning July 1 and ending June 30 We will maintain this performance standard during each year of the contract If we do not meet this commitment, we will supply the City $4,000 worth of legal services, programming and computer services or a cash payment, according to the City's preference If the City should revise its criteria at any time during the selection process, we would welcome the opportunity to negotiate any additional desired services or enhancements with the City BGSM pledges to exercise good faith and due diligence in the collection of delinquent taxes for the City of Denton and in our efforts to meet this performance goal It should be recognized that the law firm should not be penalized if adverse economic conditions or other factors beyond its control cause a material reduction in the collection percentage Page 70 XI. Attorneys Fees We propose to collect delinquent taxes for the City of Denton for a fee in the amount of fifteen percent (15 %) of the amount of taxes, penalty and interest actually collected (Sections 6 30, 33 07 and 33 48, Texas Property Tax Code) No fee will be payable until the delinquent tax money is collected and in the City's treasury Our fee would be payable on a monthly basis This is a standard arrangement throughout the state and was previously promulgated by the State Property Tax Board At no additional cost we will provide legal representation in connection with all phases of collection activity as described previously It is the considered legal opinion of BGSM that contracts and compensation for private attorneys in the collection of delinquent taxes are strictly governed by Texas Property Tax Code Sections 6 30 and 33 07 It has been consistently held by the Courts of Texas and Office of the Attorney General of Texas that taxing units have no authority to hire or compensate attorneys except by that authority expressly conferred by statute Page 71 F o N O � O N F o F � o Fes- Crq D kn � ti)Cd s r vi S� S o ° S 8� S� ° r- N A - � - r- a vp'� za ONO � M �O W ,Nr VM ONO O� h N O\ V1 h �O M N N kn V1 O r V W N O, O Cl) 7 00 a 00 M V 00 00 e} eh �O 00 ti' rO 00 00 N 00 00 M � y 00 ovo a v oVo o—vo Oro 0 0 y y � U c t Q U Q H y U o o o 0 0 V wr N y y Q kph `n yNy 0 N O O y y U H N >cq3 cu O O O O c0 O O cd y O 7 T orm U rm F O q c U a C7 C7 Q>10 c 'q U Q o3 c$ U U U U U A A F Q A w u° w` rq cq p fT p O O r%'C iC ty. N O r r r N F F r r h r o O r- r tn G c ai ai F u? L ❑ 'O c p„ N c c y A ') c ��yy NO z z W O N N O O Vp1 O O N N N p N N N O �D 00 00 00 00 ��Di ,-• N M �D 00 00 �O M kn N O\ N O, 00 kn 00 Ln M M Vl d' 00 vl V'1 M �O 00 00 In Ln 00 00 00 �D � pMp ppM r r 00 r 00 � N r 00 � 00 ppM � l� 00 r a0 � pMp ppM Mpp kl N ssUJ s sUU s � �sUJ o L ssU� L L s s s o o a U o U 0 U s 0 o F H y y O O A Q� y N (�J N O W C O O U Vi N Vl U F" V � Hy v N y y y N y y N y � Vf 7� L Vi N Vi N N N ti � y C y ❑ ?? I y N F F fd VI C. rz y O 3 O 5� uj • N y vl y N Q Fi U � a a A � � g A ry � o g+ ro L .n ° ❑ � .� x � C� CO ��11 G C7 nro c F c N c =c U CJ L id U � U � U � 0.. � U U a C C °gyp' o� L > y E O '> ccL E L CC) +� C O y yCN.�, N d C c0 y C_ C cd cOc�i N S O a a F 3 N N eN} NO p O N O O p N M O F o E� F Fes- Fk n O Ems- X ai H Fes- kn k k Fk y A Q A N 2 9 t� VI V C7 Vl z C VI H O = C' V] o a 6 y N N cn o a W N N 000 N N q O— N O N M M N--� N �O 00 00 M — M 00 N N O, 00 Cr,-) N V1 V1 N M ` 00 V1 V1 00 -e lc Le) V1 Vl M V � w 00 t , cn 00 w 00 00 me le 00 00 IO 00 M M m w 00 w x l- pMp pMp pMp ppM � l� m pMp 7_ � pM � m pM � N �_ m pM pM 00 O� O� O� O� T 00 O� N N O� N Q� as M 00 O O C U U O O O U O U V V U L+ L L V C y L y V U C tUu � � C � C cJ U ❑ N C > cd > N U C C C a+ _ Q A Q A A ti A A �, A A A Ca A A A Ca = c _rACa y c7cd 79 > .�. 9 O O C ice, N Ca O C C N O O N vi C > Q o$ oa U U U U U p C7 z i a cG § § \ / & \ - � k o $ { � z \ � ) � � d e \ k j / \ \ » a / / \ \ � / � \ � � \ e # j § k ) � Q = e ] \ \ ƒ _ f 2 / z 2 § § \ / ) « J } r � r k k \ \ \ \ j \ \ \ w N ) \ ) w � 0 § \ \ / / e § b $ \ F § J & J k 0 � � § � \ j � ! \ j ? g \ § \ § \( \ k f e % \ 2 \ ƒ\ C7, ) \( \( / w 2 \ \ \ r4 C ] ? / j \ / 2 \ \ ¢ / ow § t \ ) \ § § \ / / \ R ) ( ) e § $ ) « o � � ` \ 2u )/ 2 a Ltd/ 4 & a§44 >4 C]\/ k /\\ z \�)��\ / u )uuuu 78 ; ))) ±4 ±ƒ ±S G } }/j a/ \/\;| \) ±ewGuu � § I \ � _ = J >1 ) ; 2Q)f) ))y3uu± \M00 G=QjGec Appendix B Sample Demand Letters BLAIR, GOGGAN, SAMPSON & MEEKS ATTORNEYS -AT LAW P o Box 1527 GN 326 G EAST MCKINNET STREET DENTON TEXAS 76202 1627 Zed (B1T) 363 ♦460 Not cAx (B1T1 382 2829 July 17, 1996 aft ACCOUNT NUMBER AMOUNT DUE: JURISDICTIONS: DENTON I. S. D. DENTON C E. D. Dear Denton Independent School District Taxpayer: Our law firm has been retained to institute forced collection procedures to collect delinquent taxes owed to the Denton Independent School District on the above referenced account. This letter and the detailed tax statement enclosed are your notice that these taxes are delinquent and have been turned over to us for collection. You must make payment within = days from the date of this letter or face foreclosure proceedings designed to satisfy your tax delinquency by selling your property to the highest bidder for cash. Upon filing suit against you, we will request of the Court that you be required to pay all related costs, including attorney's fees, in addition to your delinquent taxes, penalty and interest. In order to avoid the above proceedings with associated costs and inconveniences, please return the enclosed statement along with your check payable to: Denton County Tax Assessor/Collector Attn: Denton I.S.D. Collections P.O. Box 1249 Denton, Texas 76202-1249 Please notify our office immediately if this property is involved in litigation or bankruptcy. If you believe that you do not owe this tax, or that you are entitled to an exemption, or if you do not own the property, please call our Collections Department at (817) 383-4460 or write this law office at P.O. Box 1527, Denton, Texas 76202-1527 and include the ACCOUNT NUMBER along with your comments and supporting documentation. Sincerely, BLAIR, OGGAN, SAMPSON & MEEKS 5 - Stephen Blair SB:rs Attorney at Law Enclosure RETURN THIS STATEMENT WITH YOUR PAYMENT MAKE YOUR CHECK. MONEY ORDER OR CASHERS CHECK PAYABLE TO DENTON COUNTY TAX OFFICE MAKE SURE THE ADDRESS APPEARS IN -HE WINDOW ENVELOPE WHEN MAILING PAYMENT TO DENTON COUNTY TAX ASSESSOR/COLLECTOR ATTN DENTON I.S.D COLLECTIONS P 0 BOX 1249 DENTON, TEXAS 78202-1249 a.PpRoR FORM ❑ 4gpI ��s Not approad Slgaat ue Date YEARS BASE TAX PENALTY 6 INTFREST TOTAL DLX IF PAID D RIN UNE IBM 1994 11.92 5.77_ _ 17.69 _ TOTAL _ $11.92 $3.77 $17.69 F YOU HAVE PAD THIS ACCQAdT IN PLLL. PLEASE 019115 FID THIS Np7ICE PAY THIS I01®11,1'11 AMOUNT $17.69 BLAIR, GOGGAN, SAMRSON & MEEKS ATTORNEYS -AT LAW A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS R O BOX IS21 326 0 EAST MCKINNEY STREET DENTON TEXAS 76202 (8171 381 4460 FAX (817) 382 2BZS October 16, 1996 ACCOUNT NUMBER Dear Denton I.S D. Taxpaver: AMOUNT DUE: $213.01 JURISDICTIONS: DENTON I. S. D. DENTON C. E. D. By our letter of July 17, 1996, you were advised that delinquent taxes were owed to Denton ISD as indicated above. The records of the Tax Assessor/Collectorns Office state that you remain in default and currently owe tax, penalty and interest as shown on the above -referenced account. Lawsuits will be filed on behalf of Denton ISD to enforce the collection of these delinquent taxes. with the aid of a title company, we are verifying the ownership of your property in preparation for a lawsuit. Any court judgment taken against your property could result in a tax sale of the property on the Courthouse steps. Attorney's fees and other costs continue to increase as additional legal steps become necessary. In order to avoid this costly process, immediate payment must be made by returning the enclosed statement and your check payable to: Denton County Tax Assessor/Collector Attn: Denton I.S.D. Collections P. 0. Bux 1249 Denton, Texas 76202-1249 DO NOT HESITATE. This final notice does not ensure that you have not already been sued; there is no grace period. If you believe that you do not owe this tax, or that you are entitled to an exemption, or if you do not own this property, please write or call our law office at (817) 383-4460. Provide the account number with your comments. Thank you for your assistance in resolving this matter. Sincerely, BLAIR, GOGGAN, SAMPSON & MEEKS Stephen Blair SB:np Attorney at Law Enclosure RETURN THIS STATEMENT WITH YOUR PAYMENT MAKE YOUR CHECK MONEY ORDER OR CASHIER S CHECK PAYABLE TO DENTON COUNTY TAX OFFICE MAKE SURE THE ADDRESS APPEARS IN THE WINDOW ENVELOPE WHEN MAILING PAYMENT TO DENTON COUNTY TAX ASSESSOR/COLLECTOR ATTN: DENTON IS D COLLECTIONS P 0 1 BOX 1249 DENTON, TEXAS 76202-1249 ACCT NO: PROPERTY DESCRIPTION. DENTON ISD/CED YEARS BASE TAX PENALTY & INTEREST TOTAL DUE IF PAID DURING OCTOBER 1996 1995 153.08 59.93 213.01 TOTAL $153.08 $59.93 $213 01 F YOU HAVE PAD THIS ACCOUNT N FULL, PLEASE DISREGARD THIS NOTICE PAY THIS ����IIIIIIIIII uuIIII��II ��IIII ��IIIIp�I�N AMOUNT $213.01 IN$W�1$I 11IIBUpB 61HS S bur UrcumemeWrtlio®fin\aAOelio9om� Tu AtmmM Couovn tlu AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE DELINQUENT TAX ATTORNEY CONTRACT WITH THE LAW FIRM OF LINEBARGER, HEARD, GOGGAN, BLAIR, GRAHAM, PENA & SAMPSON, L L P, AND THE LAW FIRM OF GREGORY & BRADSHAW, PC EXTENDING THE CONTRACT FOR AN ADDITIONAL ONE YEAR TERM ENDING ON JUNE 30, 2001, AUTHORIZING THE CITY MANAGER TO GIVE WRITTEN NOTICE TO THE FIRM OF ITS DESIRE TO EXTEND THIS CONTRACT, AMENDING THE FIRM NAME AND MAKING ADDITIONAL CHANGES TO THE CONTRACT, AUTHORIZING THE EXPENDITURE OF FUNDS, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the initial term of the City's Contract for the Collection of Delinquent Property Taxes with the law firm of Lmebarger, Heard, Goggan, Blair, Graham, Pefla & Sampson, L L P (formally known as Blair, Goggan, Sampson and Meeks), and the law firm of Gregory & Bradshaw, P C (formally known as the Law Office of Mike Gregory) expires on June 30`h of this year, and WHEREAS, Section XIII "Term" of the Contract authorizes the City Council to extend the contract two additional one year terms upon the City giving written notice to the law firms at least 30 days prior to June 30, 2000, of its desire to continue the contract, and WHEREAS, the City Manager has recommended that the Contract be extended for an additional one year term commencing July 1, 2000 and ending June 30, 2001, and WHEREAS, the City Manager has recommended that the Contract needs to be amended to reflect the change in the firm name, and by substituting for the phrase "Executive Director of Finance" the phrase "Assistant City Manager for Finance and Municipal Services", and WHEREAS, the City Council deems it in the public interest to extend and amend the contract, NOW,, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the Contract for the Collection of Delinquent Property Taxes between the City and the law firm of Linebarger, Heard, Goggan, Blair, Graham, Peha & Sampson, L L P, and the law firm of Gregory & Bradshaw, P C , executed June 17, 1997, as hereby amended (Contract), be extended under the same terns and conditions for an additional one year tern beginning July 1, 2000 and ending on June 30, 2001 That the City Manager is hereby authorized to execute the First Amendment to this Contract in substantially the form of the attached First Amendment to the Contract for the Collection of Delinquent Property Taxes which is made a part of tlus ordinance for all purposes Page 1 of 2 S \Op, �[®mle\O�dNRtMA V.00IIogOt01 iR Al W�Oq �butlxl dtt SECTION 2 That the City Manager is hereby directed to give written notice to the law firms at least 30 days prior to June 30, 2000 of the City Council's desire to extend this contract for an additional one year term enclosing a true and correct copy of this ordinance SECTION 3 City Manager is authorized to undertake the expenditure of funds and to perform the other obligations as set forth in the contract SECTION 4 That this ordinance shall become effective immediately upon its passage and approval dd PASSED AND APPROVED this the �= day of � ,QT 2000 ATTEST JENNIFER WALTERS, CITY SECRETARY By APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY By JA M LER, MAYOR Page 2 of 2 F \sb=d\dept\LGL\Our DocumentsTontmcts\00\Delmquent Tax Amendment doc FIRST AMENDMENT TO CONTRACT FOR THE COLLECTION OF DELINQUENT PROPERTY TAXES STATE OF TEXAS COUNTY OF DENTON This First Amendment to that certain Contract made and entered into between the City of Denton, Texas, 215 E McKinney, Denton, Texas 76201 ('City'), acting herein by and through its governing body, and the Law Firm of Lmebarger, Heard, Goggan, Blau, Graham, Penh & Sampson, L L P, and the Law Firm of Gregory and Bradshaw, P C 303 N Carroll Boulevard, Suite 100, Denton, Texas 76201, hereinafter referred to as the "Firm" WHEREAS, the City Council has authorized the extension of the contract for Collection of Delinquent Property Taxes between the City and the Firm for a one year period ending on June 30, 2001, and WHEREAS, the contract needs to be amended to reflect the changes in the Firms name and to amend Section VIII "Progress Reports" to substitute for the phrase "Executive Director of Finance" the title "Assistant City Manager for Fiscal and Municipal Services", In consideration of the following terms and conditions the Contract for the Collection of Delinquent Property Taxes between the parties is hereby amended as follows The first paragraph on the first page of the contract is hereby amended to read as follows This contract is made and entered into by and between the City of Denton, Texas, 215 E McKinney, Denton, Texas 76201 ("City'), acting herein by and through its governing body, and Lmebarger, Heard, Goggan, Blair, Graham, Peiia & Sampson, L L P , ("Firm") and the Law Firm of Gregory and Bradshaw, P C , 303 N Carroll Boulevard, Suite 100, Denton, Texas 76201 That Section VIII "Progress Reports" is amended by substituting for the phrase "Executive Director of Finance" in the first sentence the phrase "Assistant City Manager for Fiscal and Municipal Services" F \SHARED\DEPT%GL\Our D0cument8\Contmcts\00\4elmquent Tax Amendmem doc That save and except as amended hereby the remaining sections, sentences, clauses and phrases of the above -referenced contract for Collection of Delinquent Property Taxes between the parties shall remain in full force and effect IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and Fum has executed this Agreement on this the /ZQ day of _4&�, 2000 "CITY" CITY OF DENTON, TEXAS BY GU• MI L W Z, MANAGER ATTEST. JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY F \SHAREMDEPrALWOw Documents\CmtmctsWO\Delmquwt Tax Amendment dm LINEBARGER, HEARD, GOGGAN, BLAIR, GRAHAM, PENA & SAMPSON, L L P m GREGORY AND BRADSHAW, P C m.